Roth Capital Lifts Estimates for xG Technology Inc (XGTI)


In a research note issued Friday, Roth Capital analyst William Gibson reiterated a Buy rating on shares of xG Technology Inc (NASDAQ:XGTI), with a price target of $3.50, after the company reported encouraging preliminary numbers for the second quarter of 2017. Revenue of $14.1-$14.5 million exceeded Gibson expectation of $12 million. The company also expects positive net income and EBITDA, while Gibson’s estimate was a $1.7 million loss or ($0.15) per share with adjusted EBITDA of $70,000.

Gibson noted, “We revised our 2Q17 estimate to a profit of $60,000 or $0.01 per share on revenue of $14.1 million with adjusted EBITDA of $1.2 million […] We also expect a non-cash accounting adjustment in 2Q17 related to a bargain purchase price for the acquisition of Vislink assets in 1Q17. The company booked a preliminary gain of $11.8 million in 1Q17, but revisions are likely with the formal adjustment from an independent firm (Pine Hill).

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst William Gibson has a yearly average return of -9.4% and a 41% success rate. Gibson has a -3.9% average return when recommending XGTI, and is ranked #4334 out of 4600 analysts.