SeeThruEquity Issues Update on FTE Networks Inc. (FTNW) and Raises Price Target to $2.75

NEW YORK, NY / ACCESSWIRE / March 21, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on FTE Networks Inc. (OTCQX: FTNW).

The report is available here: FTNW Update Note.

Based in Naples, FL, FTE Networks Inc. (OTCQX: FTNW, “FTE Networks”) is a provider of network infrastructure services and solutions. The company has nearly a decade of experience providing end to end network infrastructure solutions for Tier 1 and Tier 2 communications service providers, government agencies, OEMs, and network infrastructure providers. FTE Networks is focused on helping customers build smarter networks, which are more capable of handling the increasing complexity and bandwidth needs of services provided over wireless and wired data networks. FTE is led by a seasoned leadership team with deep experience at industry technology leaders such as Zayo, Level3, and Qwest, among others.

Investment Highlights

Transformative announcements to start 2017

FTE has made several significant corporate announcements in 1Q17, which have the potential to be very positive for the company. These include an application to list shares on the Nasdaq Capital Markets, and what appears to be a transformative announcement that it will acquire Benchmark Builders, Inc. (“Benchmark”) – a move that will expand service capabilities while adding marquee customers and more than doubling its three-year backlog.

Benchmark acquisition augments backlog, service capabilities

On March 9, 2017, FTE announced the acquisition of privately held Benchmark Builders, Inc. in a $75mn cash and stock transaction. Based in New York, Benchmark was founded in 2008 and provides construction management services in the Northeastern United States. Benchmark specializes in what the company describes as “technologically complex work” and large projects in the telecommunications, commercial real estate, industrial, broadcast, technology, infrastructure, healthcare, and education industries. We are enthused about the potential from this deal given the boost to backlog – Benchmark is expected to add $300mn to the combined company’s 3-year backlog – and an impressive customer list. Benchmark’s website lists Google, Cushman & Wakefield, Colliers, and Fox, among others, as representative customers. Pending financing, the deal is expected to close in calendar 2Q17.

Nasdaq CM application, new orders show progress

FTE has also shown progress in its core business, as the company looks to execute on management’s bullish topline guidance for 2017 of $55mn in revenues. In a March press release, the company reiterated that its 3-year organic pipeline was $170mn and that it received follow-on orders in a $10mn project in Midtown Manhattan, which would imply powerful annual growth versus the 2016 estimate of $16.4mn. Additionally, FTE has applied for a listing on the Nasdaq CM, which, if approved, would be a significant development for the company.

Raising target to $2.75 on deal announcement

We are increasing the price target for FTE Networks to $2.75 per share at this time. We see several possible catalysts ahead for the company, with results and guidance for 2017 upcoming, the pending acquisition of Benchmark, and the company’s February application to uplist to the Nasdaq Capital Market.

Please review important disclosures on our website at www.seethruequity.com.

About FTE Networks Inc.

FTE Networks is on the leading edge of network transformation helping communications service providers, government and enterprise customers evolve their networks to meet advancing technology requirements via network infrastructure, and edge computing solutions to quickly enhance service innovation and deliver new revenue streams. With a focus on smart design, open architectures, and consistent standards, along with expertise in building, operating, and maintaining networks, FTE solves complex network and system challenges that reduce costs and deployment time to accelerate delivery and optimize performance of network infrastructure. Operating five (5) industry segments; Data Center Infrastructure, Fiber Optics, Wireless Integration, Network Engineering, and Compute to the Edge, FTE Networks is headquartered in Naples, Florida, with offices throughout the United States and Europe. www.ftenet.com.

About Benchmark Builders, Inc.

Benchmark is a New York-based construction manager and general contractor serving a diverse and sophisticated client base in the telecommunications, commercial, industrial, broadcast, technology, infrastructure, healthcare, and education industries. The company delivers unique project solutions in the complex New York marketplace. It emphasizes the ability of its experienced staff to become an integral part of a client’s project team, responding to every client need and request. Benchmark excels at technologically complex work building broadcast studios and infrastructure, as well as large projects from $30 million to $100 million. Benchmark maintains its strong reputation by consistently delivering on the quality, budget, and schedule expectations of some of the industry’s most demanding clients.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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