http://www.haaretz.com/hasen/spages/813638.html
Unterberg Towbin issues Buy for Leadcom
15.1.07 | 11:42 By TheMarker
CE Unterberg Towbin today issued a Buy rating for Leadcom Integrated Solutions, an Israeli company listed on London's AIM market, based basically on the company's strong business.
Analysts Rich Church and Gina Chen note that their impetus is the company's win of a contract in India, to build telecom sites, and also follow-on orders in Africa.
The first phase of the Indian contract is worth $5 million but it could end in $20 million revenues, mostly in 2007. Also, in December 2006, the company announced a unrelated $10 million contract in India, for execution this year.
In short, Unterberg sees joy for Leadcom in India.
Also, the African follow-on contracts total $14,5 million, all bookable this year.
The market has been noticing Leadcom's charms. The investment bank notes that it tapped Israeli institutional investors for NIS 125 million through a heavily oversubscribed offering of bonds, which won an A3 rating by Midroog. The offering brings Leadcom new resources to fuel its rapid growth, explain the analysts.
Risks for Leadcom include "customer concentration, competition, partnerships, currency risk for AIM-listed stocks and," as always, the possibility that its customers will scale back capex.