Send to a Friend Share

Soleil Securities Upgrades Tellabs (TLAB) to Buy; Short Term Trading Call

November 24, 2009 9:00 AM EST
TLAB Hot Sheet
Rating Summary:
    1 Buy, 12 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Soleil Securities upgrades Tellabs (Nasdaq: TLAB) from Hold to Buy. Price target $7.25.

Soleil analyst says, "With Tellabs trading more than 25% below our $7.25 price target we are upgrading the shares to Buy from Hold. The $7.25 price target is based on 15x taxed operating earnings minus cash on the balance sheet...We view this upgrade as more of a short term trading call than a fundamental change in our long-term view of Tellabs. We view the WiChorus acquisition as a solid move towards increasing the next-generation exposure but much more work is needed in our view...We think Tellabs could trade back up towards our price target on solid 4Q results, positive momentum in the router and optical products, and continued success in winning next-generation backhaul business. We also think there is limited down side in the shares given the current valuation."

To see all the upgrades/downgrades on shares of TLAB, visit our Analyst Ratings page.

Tellabs, Inc. is engaged in designing and marketing equipment and services to communications customers worldwide.

You May Also Be Interested In


Related Categories

Upgrades

Related Entities

Soleil Securities

Add Your Comment





Follow StreetInsider.com On Twitter