National Bank Financial released a new report Thursday increasing its earnings per share (EPS) estimate for Aastra Technologies Limited (OTC:AATSF).
The EPS increase comes after the company announced 71% of its C$25-million Dutch Auction was tendered. Aastra will repurchase and cancel 1.4-million shares at C$12.50 a share, for a total purchase price of C$17.7-million.
As a result analyst Kris Thompson increased Aastra’s EPS by C$0.04 to C$0.95. He maintained his "outperform" rating on the stock and left unchanged his C$15 price target.
Mr. Thompson said in a note to clients:
We continue to view Aastra as an attractive long-term investment based on our expectations that management will successfully integrate the Ericsson business resulting in a return to strong free cash flow.
Aastra Technologies, which manufactures VoIP products such as communications servers and telephone terminals, has seen a significant rally in recent weeks, rising from C$10.50 in mid-January to Wednesday's close of C$13.50. The stock is trading up C$0.11 to C$13.61 through morning trading on Thursday.