BGB Securities Maintains Buy Rating, $17 PT On GLBC

Global Crossing Ltd. (NASDAQ: GLBC) delivered on its most recent guidance and exceeded our 4Q10 estimates, BGB Securities reports.

“The company recorded steady improvements throughout the year, with ongoing sequential top line growth and higher margins,” BGB Securities writes. “Underlying demand for transport, data centers, and managed services appears to growing, driven fundamentally by globalization of enterprises, increasing adoption of IP applications, and expanding IP video consumption. Management provided 2011 guidance for continued growth and cash flow generation.

“Although, the guidance also includes higher opex and compensation expense, limiting OIBDA growth in 2011. In all, we continue to see a business that is generally healthy and growing in the mid- to high-single-digits on a blended basis across geographies.

“Cash generation is proving to be reliable, though not yet with a steep growth curve. Global Crossing is a solid performer with a fundamentally driven outlook for steady growth of its business. GLBC comes at a significant discount to its peer group, and is attractively valued at 4.3x FY11E OIBDA.”

BGB Securities is maintaining its Buy rating and $17 PT on shares of Global Crossing Ltd., which closed Wednesday at $14.60.