Ceragon shares fall after downgrade

AP News
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Posted: Dec 16, 2009 2:17 PM

Shares of Ceragon Networks Ltd. slipped Wednesday after Wedbush Securities cut the company's rating, saying investors have largely priced in the company's growth potential.

The Israeli company, which makes equipment for delivering high-speed wireless Internet access to mobile devices, saw its stock fall 53 cents, or 4.6 percent, to $11.13 in afternoon trading.

In a client note, Wedbush analyst Matthew Robison said the growth of wireless data networks is likely in its early stages as demand rises for greater bandwidth to mobile phones.

But he added that "much of the opportunity in valuation is reflected in the share price."

He said the company's closing share price Tuesday of $11.66 was more than 28 times his earnings per share estimate for 2010 of 42 cents per share _ above the five-year average of 26.4 times.