Ceragon Networks' (NASDAQ:CRNT) Acquisition of 'NERA Networks AS' as Dilutive 2011, Accretive 2012

After the acquisition of NERA Networks AS from Eltek ASA, Canaccord said they see the deal being dilutive to 2011 and accretive to 2012.

Canaccord says, "Ceragon Networks announced the acquisition of NERA Networks AS from Eltek ASA for approximately $48.5M, cash- and debtfree. Consistent with management commentary, we expect the acquisition to be dilutive to 2011 but substantially accretive to 2012 earnings...we have revised our 2011 revenue and pro forma EPS estimates from $291M/$0.75 to $461M/$0.45 and raised our 2012 estimates from $354M/$0.90 to $548M/$1.08."

Canaccord Genuity maintains a "Buy" rating on Ceragon Networks (CRNT), which closed Thursday at $13.18, losing $1.06, or 7.44 percent. Canaccord has a price target of $18 on Ceragon.