Comtech price target lowered to $7 from $9.25 at B. Riley

B. Riley analyst Mike Crawford lowered the firm’s price target on Comtech (CMTL) to $7 from $9.25 and keeps a Buy rating on the shares. The company delayed its quarterly filing and disclosed yet another CEO transition, its fifth in as many years, the analyst tells investors in a research note. The firm believes intrinsic asset value remains Comtech’s “saving grace,” with a favorable resulting risk/reward equation “despite the re-ignition of going concern fears” following the company’s reclassification of its $206M of debt to a current liability. Comtech expects to trip one or more of its debt covenants when it reports fiscal Q2 results “amid a painful operational restructuring, in which the company has now written down goodwill and receivables alike,” contends Riley.