As previously reported, Jefferies downgraded Comtech to Underperform from Hold with a price target of $7.50, down from $10, noting that Comtech finished the quarter with $18M in cash and that lenders reduced the availability of capital on the company’s credit facility in conjunction with Comtech’s sale of the amplifier business to Stellant. In addition, Comtech’s auditor required the insertion of going-concern language into the company’s filing this quarter, noted the analyst, who voices concerns about the company’s balance sheet as well as the “mismatch” between the company’s EBITDA results and cash generation.
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