Ceragon Networks (CRNT), mcap=$170m, price $2.02 vs 1.80

CRNT  pitch:
– Vendor for global wireless network operators specializing in backhaul solutions.
– Shareholders have recently rejected the hostile takeover by peer $AVNW at $3.8/share (70% upside from current levels).
– $AVNW used a difficult equity market environment to opportunistically scoop up an undervalued asset.
– While $AVNW is the leader in North American backhaul, CRNT is now encroaching on its territory, having secured contracts with every NA Tier 1 operator.
– Renewed talks between AVNW and CRNT present the potential for near-term upside realization.
– Post proxy fight CRNT management is forced to drive shareholder value.

CRNT valuation:
– Trades near its historical 1x book value floor.
– Failed takeover attempt at $3.08/share in Aug’22.
– Management’s internal value estimate of $5/share.

Exp. gain: +70% to $3.08+

Full CRNT write-up (free guest account required):