Ceragon Networks Ltd (CRNT)

[midastouch017]

Warming Up

Of the Israeli stocks in my portfolio, Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT), which reported yesterday, received a boost last Friday, when First Albany Inc. reiterated its "Strong Buy" recommendation for the company and upped its target price to $16 from $13. Having climbed 147% since the beginning of the year, some people will no doubt be selling their shares, regardless of the company's second quarter results.

I, on the other hand, think that Ceragon could still climb even further since the inflow of investment into its particular field, wireless networks, and in the markets it operates in such as India or even the US, is so large that I don't see any slowdown in the offing. It is possible, for example, that Ceragon, not Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR), will be the big Israeli winner of Sprint Nextel Corp's (NYSE: S) mega WiMAX project, since the company partnering with Sprint in its roll-out, Clearwire Corp. (Nasdaq: CLWR), is, I believe, a customer of Ceragon.

http://www.globes.co.il/serveEN/globes/docView.asp?did=1000235608&fid=1176