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Auriga Initiates Coverage on ADTRAN (ADTN) with a Buy

June 24, 2009 7:23 AM EDT
ADTN Hot Sheet
Rating Summary:
    4 Buy, 8 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Auriga initiates coverage on ADTRAN (Nasdaq: ADTN) with a Buy. Price target $26.

Auriga analyst says, "ADTRAN’s (ADTN) new TA5000 product line appears poised to deliver on its long-held promise of rejuvenating the top and bottom lines. The company has a long history of profitability, technology innovation, and cost control. Our enthusiasm remains tempered, however, by the potential fallout from the pending Verizon deal with Frontier for the sale of 4.8mn rural telephone lines, which has the potential to disrupt a vital ADTRAN customer...Our earnings model reflects a conservative (near-consensus) view for 2009 of $1.12, but a more aggressive view for 2010 ($1.34 versus the Street’s $1.24). However, we think this new product cycle could become material to earnings starting in 2H09."

To see more analyst ratings on ADTN Click Here.

ADTRAN, Inc. (ADTRAN) is engaged in designing, manufacturing, marketeting and servicing network access solutions for communications networks.

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