Barclays Maintains an 'Equalweight' on ARRIS Group (ARRS); BigBand Broadens Cable Strengths

Barclays maintains an 'Equalweight' on ARRIS Group (NASDAQ: ARRS) price target of $13.00.

Barclays analyst says, "The acquisition of BigBand Networks both broadens ARRIS' product portfolio around video based services and leverages on the company's already lead position in the industry's convergence to an all IP network architecture. In both regards, we consider the acquisition to be strategically sound."

"Expect F3Q sales just below the midpoint of guidance of $270-290M: Management disclosed that F3Q revenues are likely to be just shy of the midpoint of guidance though well within the range of $270-$290M. We expect to hear the familiar themes of continued broadband capacity consumption driving healthy CMTS purchases. Traction with the IP video gateway also appears on track. ARRIS reports F3Q results on 10/26....Estimates and target unchanged: We hold our sales and EPS estimates steady at $280M / $0.22 for F3Q, $1.1B / $0.86 for 2011 and $1.2B / $0.94 for 2012, which are broadly in line with consensus."

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

Shares of ARRIS Group closed at $11.45 yesterday.

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