Jefferies Cuts Price Target on Comverge (COMV), They Have Two Options

Jefferies is maintaining its Hold rating on shares of Comverge (NASDAQ: COMV) while lowering its price target from $4.50 to $3.50.

The company reported slightly better Q2 results than expected as investors were happy that no major negative catalysts were announced. For Q2 Comverge had $32.5 million in sales and EPS loss of $0.28, ahead of the firms estimates of $31.7 million and a loss of $0.29.

Year to date COMV's market cap has fallen 70 percent to around $57 million, and the firm believes that the company must raise capital to sustain the business or look for a merger or an acquirer. Jefferies feels that Comverge is currently seeking all possible options, but questions if a deal may ever be reached.

Comverge's FY11 guidance has a revenue range of $136-$141 million, and notes that FY12 should be a breakeven year for the company as they forecast profitability in FY13.

The firm is lowering its FY11 and FY12 EPS estimates from ($0.64) and ($0.22) to ($0.80) and ($0.39). The firm is also reducing its revenue estimates from $145.8 million and $169.6 million to $140.1 million and $164 million.

For more ratings news on Comverge click here and for the rating history of Comverge click here.

Shares of Comverge closed at $2.23 yesterday.

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