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UBS Maintains a 'Buy' on ADTRAN (ADTN), but Cutting Numbers on Slow Start to 2012

March 14, 2012 12:17 PM EDT
Get Alerts ADTN Hot Sheet
Price: $5.44 +2.26%

Rating Summary:
    8 Buy, 13 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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UBS maintains a 'Buy' on ADTRAN (NASDAQ: ADTN) price target lowered from $40 to $37.

UBS analyst says, "U.S. Tier 1 telco spending has started the year soft. We believe this is due to even more scrutiny on cash flow and operational metrics by executives at Tier1 telcos and ongoing strategic uses of cash. While capex budget approvals are complete, the spending mechanism that typically follows is off to a slow start. We believe this will create a challenging quarter for companies
exposed to US Tier1 telcos."

"We lower 1Q revenues to $165M (flat YoY) vs. prior $175M and EPS to $0.42 vs. $0.47. We still see solid results in ADTN's Enterprise and Intl sales and view the weak Tier1 sales recovering in 2Q." (FY12 EPS lowered from $2.22 to $2.07 and FY13 from $2.61 to $2.37)

For an analyst ratings summary and ratings history on ADTRAN click here. For more ratings news on ADTRAN click here.

Shares of ADTRAN closed at $31.30 yesterday.


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