Auriga Maintains a 'Hold' on ADTRAN (ADTN); NSN Deal Closes
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Price: $4.73 +1.72%
Rating Summary:
8 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
8 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Auriga maintains a 'Hold' on ADTRAN (NASDAQ: ADTN) price target of $34.00.
Analyst, Kevin Dede, said, "While finalized on May 4, ADTRAN held a conference call yesterday morning to discuss the financial details behind the closing of Nokia Siemens Networks Broadband Access (NYSE: NOK)(NYSE: SI) business acquisition entered into last December. And while generally understood that NSN was to add in the range of $140-180M in sales annually, and the net consideration of the deal was not considered material, recent trends in carrier spending have left us somewhat concerned the outlook for the European centric business may have degraded. However, management clearly indicated that there is no change to the near-term forecasts for the organic ADTRAN business, nor any change in the expectations on what NSN can ultimately deliver. With more information regarding near-term parameters, we have adjusted our sales and earnings forecast to incorporate about $24M in NSN sales during the current quarter, and about $36M on a quarterly run rate basis going forward. However, the overarching concern was not appeased during yesterday's call, despite the fact that we know ADTRAN has studied the NSN business for more than one year."
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 $30.19 yesterday.
Analyst, Kevin Dede, said, "While finalized on May 4, ADTRAN held a conference call yesterday morning to discuss the financial details behind the closing of Nokia Siemens Networks Broadband Access (NYSE: NOK)(NYSE: SI) business acquisition entered into last December. And while generally understood that NSN was to add in the range of $140-180M in sales annually, and the net consideration of the deal was not considered material, recent trends in carrier spending have left us somewhat concerned the outlook for the European centric business may have degraded. However, management clearly indicated that there is no change to the near-term forecasts for the organic ADTRAN business, nor any change in the expectations on what NSN can ultimately deliver. With more information regarding near-term parameters, we have adjusted our sales and earnings forecast to incorporate about $24M in NSN sales during the current quarter, and about $36M on a quarterly run rate basis going forward. However, the overarching concern was not appeased during yesterday's call, despite the fact that we know ADTRAN has studied the NSN business for more than one year."
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 $30.19 yesterday.
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