DragonWave, Inc. (USA) (NASDAQ:DRWI) investors should be smiling from ear to ear today after the microwave technology firm announced that Sprint Corp (NYSE:S) has selected its microwave backhaul equipment for network deployment as part of the company’s densification and optimization strategy.
DragonWave shares reacted to the news, jumping nearly 41% to $3.12 in early trading Thursday.
DragonWave was selected for the combination of its dual channel capability and industry leading system gain, as well as its advanced network security capabilities. DragonWave’s microwave backhaul equipment will be used as part of Sprint’s strategy to significantly densify its network through the deployment of small cells and other solutions, with the goal of further improving network performance and the customer experience. Densification enables Sprint to keep pace with the growing demand for data and provide customers with more capacity and faster data speeds in targeted high-traffic locations.
“We look forward to continuing our work with DragonWave as part of our densification and optimization strategy,” said Gunther Ottendorfer, COO of Technology at Sprint. “Microwave backhaul is a cost-efficient, reliable alternative when used in the right ring structures, and it’s a key part of the extension of our overall toolkit as we work to provide customers with more consistent coverage, better reliability, and even faster data speeds.”
“DragonWave is pleased to extend our relationship with Sprint, and we know that we can bring unique performance advantages that can be leveraged in its network densification efforts,” said Peter Allen, President & CEO, DragonWave. “We look forward to supporting Sprint’s growth and expansion by delivering on our commitment to provide unmatched product performance, reliability and support.” (Original Source)
On the ratings front, H.C. Wainwright analyst Kevin Dede assigned a Buy rating on DRWI, with a price target of $4, in a report issued on September 6. The current price target represents a potential upside of 81.0% from where the stock is currently trading. According to TipRanks.com, Dede has a yearly average return of -10.2%, a 33.3% success rate, and is ranked #3834 out of 4180 analysts.
DragonWave, Inc. engages in the development and provision of packet microwave solutions. Its products include hybrid microwave, small cell solutions, network management, and packet microwave. It offers mobile backhaul, small cell networks, intelligence networks, infrastructure monitoring, last-mile fiber extension, and rural cellular backhaul services.