Canaccord Genuity Increases Target Price on Buy Recommendation for COM DEV International (TSX:CVD) - Video Posted on InvestmentPitch.com

Fri Jun 7, 2013 6:49pm EDT

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Vancouver, British Columbia, June 7, 2013 - Investment firm Canaccord Genuity has updated its buy recommendation on COM DEV International (TSX:CVD). Following the release of solid second quarter results, analyst Robert Young reiterated his buy rating, increasing his one-year price target from $4.35 to $4.75, a 36% premium to the $3.49 price at the time the report was issued.

InvestmentPitch.com has produced a "video news alert" about COM DEV based on this research report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "COM DEV" in the searchbox.

With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced subsystems and microsatellites that are sold to major satellite prime contractors, such as Lockheed and Boeing, government agencies and satellite operators, such as the Canadian Space Agency. The equipment is used in communications, space science, remote sensing and defense applications.

The company's majority-owned subsidiary, exactEarth, provides satellite data services.

COM DEV reported $55.2 million in revenue, up 10.2% year over year and 5.6% quarter over quarter, in line with Canaccord's estimate of $55.9 million. Gross margins of 26.7% were also in line with Canaccord's estimates, as were adjusted earnings per share of $0.06. The revenue split between three market segments was 47 % commercial, 34% civil, and 19% military. Order backlog at April 30, 2013 was $149 million, of which the company expects to convert approximately 61% into revenue during the balance of fiscal 2013.

"The second quarter of 2013 delivered solid results, with continued strong gross margins in our equipment business, and a book-to-bill ratio that stayed above 1.0 for the fifth consecutive quarter," stated Michael Pley, CEO of COM DEV. "Subsequent to our quarter-end we have seen a significant pick-up in announcements for new satellite orders and we maintain our outlook for growth in revenue in fiscal 2013."

Analyst Robert Young stated, "With a leading growth profile and exactEarth service revenues growing to profitability, we now expect COM DEV to trade at a premium."

The shares are currently trading at $3.60, and with 76.4 million shares outstanding, the company is capitalized at $275 million. As we stated, this $3.60 price is well below Canaccord Genuity's target price of $4.75.

For more information, please visit the company's website www.comdev.ca or contact Gary Calhoun CFO at 519-622-2300 ext 2826 or email gary.calhoun@comdev.ca.

The investors relations is handled by TMX Equicom. Please contact Craig MacPhail at 416-815-0700 ext 290 or email cmacphail@tmxequicom.com.

For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.

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