UPDATE: D.A. Davidson & Co. Reiterates On Towerstream On Mixed Q2 Results

In a report published Tuesday, D.A. Davidson & Co. analyst Donna Jaegers reiterated a Buy rating on Towerstream (NASDAQ: TWER), but lowered the price target from $5.00 to $3.00.

In the report, D.A. Davidson & Co. noted, “TWER's results showed lighter than expected revenue at $8.27 million compared to our estimate of $8.41 million. Fixed Wireless shrank 1.5% sequentially but churn improved from 2.3% in Q1 to 1.7%. HetNets revenue was flat at $739k compared to $740k in Q1. Year-over-year (YoY) total revenue was flat with only a meager 0.6% increase. Expenses were up 1% YoY and down 1.5% sequentially. TWER is trying to hold expenses flat as it awaits more activity from the carriers on the HetNets business. Total EBITDA loss was $2.5 million and EPS was $(0.10), which was in line with expectations and compared to $(0.09) last year. Capex was $2.0 million and the company had negative free cash flow of $4 million—better than the $7 million cash burn in Q1. Cash at the end of the quarter was $17.3 million.”

Towerstream closed on Monday at $1.59.