Eureka upgrade

Eureka Report upgraded NTC this week.

NBN rolls out higher earnings for NetComm
SIMON DUMARESQ29 JUNE 2015

Summary: NetComm Wireless has upgraded FY15 earnings guidance to levels above consensus expectations thanks to a more rapid deployment of NBN rural broadband. Although the results for this year are encouraging, it’s the growth in FY16 and FY17 that’s critical to the valuation and share price of the company.
Key take-out: We lift our target price for NetComm to 85 cents due to increased certainty around the company’s medium-term earnings outlook from a ramp up in Vodafone and NBN revenues.
Key beneficiaries: General investors.Category: Small caps
Recommendation:
STOCK COMPANY CALL PRICE PROJECTED PRICE RISK
NTC NETCOMM WIRELESS LIMITED Buy $0.735 $0.850 High

NetComm (NTC) has upgraded FY15 earnings guidance to revenue of $73 million and an earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $7m – above analyst consensus expectations of $5.8m and also above our prior forecast of $6.6m.
The prior guidance at the half year result was above last year’s EBITDA of $5.2m. The driver of the increased guidance is a more rapid deployment of the NBN (rural broadband). In further encouraging news the NBN rollout rate is expected to continue increasing into FY16 and FY17.
The share price ($0.73) is up over 60 per cent since our “buy” recommendation after the half year result, driven by the recent earnings upgrade as well as new partner agreements.