KVH Industries (NASDAQ:KVHI) Shares Under Pressure in Short Term

KVH Industries (NASDAQ:KVHI) will remain under pressure in the short term as EPS guidance for 2011 is expected to be less than expected.

Needham said, "Following a recent day hosting KVH management in investor meetings, we remain bullish on KVH’s mini-VSAT broadband business and continue to like the long-term growth prospects for its FOG business as the company continues to grow the non-CROWS portion. That said, nothing we heard lead us to believe our materially below consensus 2011 estimates are overly conservative, especially in light of the near-term uncertainty surrounding the CROWS program. As such, we believe there is high likelihood consensus numbers will be moving lower when the company issues 2011 guidance on its 4Q earnings call, which could pressure the shares in the near-term."

Needham & Company maintains a "Buy" rating on KVH Industries, which closed Thursday at $13.41, down $0.08, or 0.59 percent. Needham raised their price target on them from $15 to $18.