TTI Team Telecom International: Time for the Turnaround?

TTI Team Telecom International Ltd. (Nasdaq: TTIL) is one of those Israeli high-tech companies that focus on telecommunications systems support, and which are fighting to find a niche in which to successfully establish themselves. Like other similar companies, TTI also raised investors' hopes at the turn of the century and like its peers, it too had a hard landing in the crisis that followed the bursting of the bubble. The company could finally be on the comeback trail, once the orders from the big telecommunications carriers start rolling in.

TTI is one of those companies that is still trying to find its way and there a several signs that the outlook for the company looks positive. CIBC analysts Shaul Eyal and Yair Reiner say that the risk is not such a significant factor for investors, and that the company's chances should now be taken into account. In other words, TTI has already hit the low point in its business and is now climbing back. The chance that the company could finally be on the comeback trail may be the reason that the CIBC analysts have rated it "Buy" with a target price of $5. The trouble here is that it's difficult to predict when the company's longstanding customers will begin placing more substantial orders and whether those customers will be of the caliber of AT&T Inc. (NYSE: T).

Eyal and Reiner feel that it will take a bit longer for TTI to find its way back onto the order books of its big customers. If this is indeed the case, then it would not be worthwhile buying the stock just yet. The one positive aspect of all this is that if the CIBC analysts are right, then the current price is without doubt a low point. If that's the case, why shouldn't I put a few shares aside in my safe?

TTIL 1-yr chart

Published originally by Globes [online], Israel business news - www.globes.co.il
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.