M Partners Reiterates Buy Rating, $5.25 PT on Mitel Networks

In a report published Monday, M Partners reiterated its Buy rating and $5.25 price target on Mitel Networks Corporation (NASDAQ: MITL).

M Partners noted, “We continue to believe that the overall market should still grow at 6% to 7% annually (as per Gartner estimates), and that Mitel Networks has a competitive product that should over the long term allow the company to mimic industry growth. Notwithstanding, due to software orientation, we believe that Mitel should demonstrate high earnings leverage in comparison to most of its peers. We have modeled that by Q3'13, the company should return to similar EBITDA volume as prior due to both a return to normalized demand and reduced fixed and variable expenses related to an approximate 10% reduction of headcount.”

Mitel Networks Corporation closed on Friday at $2.74.