NDS Group Retains a Buy Rec

United Kingdom-based NDS Group Plc (NNDS) supplies smart cards and set-top box software that enable broadcast or broadband platform operators and content providers to deliver content securely to subscribers for digital satellite, pay-television and Internet services.

NDS Group reported a weaker first quarter of 2009, with revenue and earnings lower than our estimates. Strength in conditional access, gaming and DVR technologies -- as well as new deals in emerging markets -- are helping drive revenues and growth. We have lowered our revenue and earnings estimates for 2009 based on guidance.

We expect the company to continue to expand in emerging markets while adding additional revenue streams in developed markets. We continue to rate shares of NDS a Buy with a target price of $63 based on the agreed price per share at which all outstanding series A ordinary shares are proposed to be acquired.

Udayan Mukherjee contributed to the report.

Read the full analyst report on NNDS