CELL Outlook Not So "Bright"

Brightpoint, Inc. (CELL - Analyst Report), a leading distributor of devices and logistic services to the wireless industry, declared 3rd quarter fiscal 2008 financial results with net earnings significantly above our estimates. Although the company's revenue growth was restricted due to softening demand for wireless handsets, the acquisition of Dangaard and ongoing restructuring activities were primary factors for earnings improvement.

The current stock price at its historical low multiples is also considered more favorable. On the other hand, we believe the company may be exposed to challenging macroeconomic conditions and this is evident as management decreased total forecasted devices handled from its prior guidance.

We maintain our Hold rating with a reduced valuation target for Brightpoint as we await general economic factors to improve. Our 6-month target price of $6 is based on 10.5x P/E to our fiscal 2009 earning estimates, representing a slight premium over the industry average.

Read the full analyst report on CELL

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