Zacks reiterated its rating for the UT-Starcom holders

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Independent investment research firm Zacks senior telecommunications analyst David Wayman (David Weissman) today published the report of investors, reiterated that the UT Starcom (Nasdaq: UTSI) stock rating to “hold” (Hold).

May 15, UT-Starcom released a 2008 first-quarter earnings report. UT-Starcom first-quarter results exceeded the Zacks expected, mainly because of the high-end products with the launch, UT-Starcom IPTV and optical transmission solutions to attract more customers. Benefited from a favorable product line and cost synergies, UT-Starcom profit margins also improved.

As Asian and Latin American carriers are trying to grasp market opportunities, UT-Starcom IPTV and optical transmission solutions to maintain a strong market demand. However, Zacks is expected to UT-Starcom has not short-term profit. In addition, IPTV solution in a highly competitive market, which may give UT Starcom improve margins and profitability brought about the obstacles.

Although UT-Starcom has not short-term profit, but with many global operators have started to deploy IPTV network and high-speed broadband services market demand continued to grow, UT Starcom business is expected to be enhanced. For this reason, Zacks reiterated its rating on the UT-Starcom to “buy” and the price target raised to 5.50 U.S. dollars, equivalent to the value of enterprises with 2008 annual sales ratio of 0.15 times.

This week two, UT-Starcom stock on the Nasdaq rose 0.10 U.S. dollars to close at 4.73 U.S. dollars, or 2.16 percent. Over the past 52 weeks, UT-Starcom the highest price of 7.36 U.S. dollars, the minimum price of 2.23 U.S. dollars.