Kaufman Bros. Starts ADTRAN (ADTN) at Buy; Sweet Spot of Carriers' Wireless Backhaul

Kaufman Bros. initiates coverage on ADTRAN (NASDAQ: ADTN) with a Buy. PT $50.00.

Kaufman analyst says, "We believe that ADTN shares, currently trading at ~13.0x our 2012 EPS estimate of $2.56, represent a "best-of-breed" telco access story, likely to benefit from both Fixed-Mobile Convergence (wireless backhaul), select TelcoTV deployments (GPON), and the wholesale migration of carrier access architectures to Gigabit carrier Ethernet. The current focus on shifting carrier and enterprise data center resources into the "Cloud" will be a significant driver of incremental demand for Ethernet-based last mile infrastructure."

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

Shares of ADTRAN closed at $33.78 yesterday.

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