Needham & Company Maintains a 'Buy' on ADTRAN (ADTN); Acquisition of NSN Broadband Access Business Not Ideal, But Integration Should Drive LT Accretion
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Price: $8.40 +4.09%
Rating Summary:
12 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on ADTRAN (NASDAQ: ADTN) price target of $36.00.
Needham analyst says, "While we’re not completely comfortable with ADTN’s acquisition of NSN’s broadband access business given the execution risk associated with the cross-continental/cross-cultural nature of it, at the margin we have become more comfortable as incremental details have emerged regarding: 1) price (virtually nothing); product integration plans (no risky product rationalization/replacement planned, mainly a relatively low-risk manufacturing transition); and personnel (ADTN only hiring needed workers so shouldn’t have to deal with EU labor laws). So does the uncharacteristic move suggest management concerns regarding growth of its core business? While there are certainly valid concerns about ADTN’s 2012 growth outlook based on a mixed NA cap-ex outlook, management appears to remain confident in its 2012 growth outlook and we believe was motivated by the strategic value of the deal, not by any ability to obscure potential weakness in its core business."
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 $30.46 yesterday.
Needham analyst says, "While we’re not completely comfortable with ADTN’s acquisition of NSN’s broadband access business given the execution risk associated with the cross-continental/cross-cultural nature of it, at the margin we have become more comfortable as incremental details have emerged regarding: 1) price (virtually nothing); product integration plans (no risky product rationalization/replacement planned, mainly a relatively low-risk manufacturing transition); and personnel (ADTN only hiring needed workers so shouldn’t have to deal with EU labor laws). So does the uncharacteristic move suggest management concerns regarding growth of its core business? While there are certainly valid concerns about ADTN’s 2012 growth outlook based on a mixed NA cap-ex outlook, management appears to remain confident in its 2012 growth outlook and we believe was motivated by the strategic value of the deal, not by any ability to obscure potential weakness in its core business."
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 $30.46 yesterday.
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