Needham & Company maintains a 'Buy' on ADTRAN (ADTN); Solid 2Q11 Results, But Focus on Light GM and Softer Enterprise Outlook Pressure Stock

Needham & Company maintains a 'Buy' on ADTRAN (NASDAQ: ADTN), PT lowered from $47 to $44.

Needham analyst says, "Despite a very strong performance from its Broadband Access group and a solid performance from Optical Access, ADTN shares were haircut by 10% as weaker than expected Internetworking, HDSL and gross margins conspired to create a somewhat cloudier outlook for ADTN’s earnings growth prospects even as near-term estimates were increased. That said, given the correction in the shares and the still healthy outlook for ADTN’s growth products, we maintain our rating while trimming our PT to $44, as we apply a lower 15x multiple (was 17x) to our cash-adjusted 2012 NG EPS to account for the somewhat moderated EPS growth outlook."

For more ratings news on ADTRAN click here and for the rating history of ADTRAN click here.

Shares of ADTRAN closed at $36.11 yesterday.

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