UPDATE: Goldman Sachs Downgrades ADTRAN (ADTN) to Neutral

Goldman Sachs analyst Rod Hall downgraded ADTRAN (NASDAQ: ADTN) from Buy to Neutral with a price target of $20.00 (from $20.00).

The analyst comments "We downgrade ADTN to Neutral from Buy as we believe the stock is now pricing in the growth opportunity from broadband access market momentum. We believe service provider spending is likely to continue to be directed toward broadband access enhancement. Our revenue growth forecasts of +10% Y/Y in 2021 and +7% Y/Y in 2022 capture this better growth but are now inline to slightly below consensus estimates. We acknowledge the potential for some upside to our growth forecasts to the extent ADTN sees success in some of the large RFPs that they are involved in currently. However, we believe worsening supply constraints could stretch component order lead times and further limit shorter term upside. Since we added ADTN to the Buy List on April 16, 2020, the stock has risen ~140% vs. the S&P 500 up 49%."

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 $20.21 yesterday.

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