ARRIS Group (ARRS) PT, Estimate Trimmed at Needham & Company Despite Solid Q3 on Lower Q4 Guidance

Needham & Company analyst Richard Valera trimmed estimates and his price target on ARRIS Group (NASDAQ: ARRS) to $34.00 (from $36.00) but maintained a Buy rating.

Valera said, "ARRS delivered strong 3Q14 results, but not all that surprisingly guided below consensus for 4Q14, citing some of the M&A related weakness management had called out as a risk last quarter. Management acknowledged the possibility that M&A uncertainty could persist into 1H15, depending on timing of deal closure (if they close), notably Comcast/TWC and AT&T/DTV. While this potential multi-quarter uncertainty is clearly not ideal for investors, we remain positive given: 1) management's belief that 4Q14 is likely a NT revenue bottom; 2) shares still look inexpensive at 10-11x our lowered 2015 estimates; and 3) we believe the medium-term upgrade cycle opportunity remains intact."

For 2014, they go to $5.31B/$2.58 NG EPS from $5.439B/$2.59. 2015 goes to $5.52B/$2.76 from $5.80B/$2.93

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

Shares of ARRIS Group closed at $27.98 yesterday.

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