Northcoast Research initiated coverage on Comtech Telecommunications Corp. (CMTL) with a Buy rating. The firm established a price target of $2.50 for the stock.
Comtech is currently executing a restructuring plan that involves selling half of its business. This strategy aims to streamline operations and prioritize the generation of free cash flow.
The remaining business, Allerium, provides essential infrastructure and software for public safety agencies. Northcoast highlighted that high client retention and significant recurring revenue drive the company's investment appeal.