MKM Lowers Target on Sell-Rated ADTRAN (ADTN); Warns Group Could Face Pressure
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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: 16
Rating Summary:
8 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
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In the wake of ADTRAN (NASDAQ: ADTN) Q3 warning, MKM Partners reiterated a sell rating and cut their price target on the stock to $14.00 (from $18.00).
“Adtran has had a difficult time getting new products into Verizon and AT&T to offset the still declining legacy sales. Adtran also looks to be under competitive attack from Calix (NYSE: CALX) at some of its other largest customers like CenturyLink (NYSE: CTL) and Frontier (Nasdaq: FTR),” said Communications Equipment Analyst Michael Genovese.
“While the Tier 2 regulatory environment had been favorable for Adtran in prior years, there is now much more uncertainty. Tier 3 broadband stimulus spending has been weak. Finally, the European-centric BBA unit has seen revenue forecasts consistently decline since Adtran made the acquisition,” said Genovese.
Genovese warned that, while Adtran is among the most secularly challenged of the group, the pre-announcement will raise near-term investor concerns for Alcatel-Lucent, S.A. (NYSE: ALU) Juniper (NYSE: JNPR), CIENA Corp (Nasdaq: CIEN), Tellabs Inc. (Nasdaq: TLAB) Infinera Corporation (Nasdaq: INFN) JDS Uniphase Corporation (Nasdaq: JDSU) and Finisar Corp. (Nasdaq: FNSR)
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 $19.16 yesterday.
“Adtran has had a difficult time getting new products into Verizon and AT&T to offset the still declining legacy sales. Adtran also looks to be under competitive attack from Calix (NYSE: CALX) at some of its other largest customers like CenturyLink (NYSE: CTL) and Frontier (Nasdaq: FTR),” said Communications Equipment Analyst Michael Genovese.
“While the Tier 2 regulatory environment had been favorable for Adtran in prior years, there is now much more uncertainty. Tier 3 broadband stimulus spending has been weak. Finally, the European-centric BBA unit has seen revenue forecasts consistently decline since Adtran made the acquisition,” said Genovese.
Genovese warned that, while Adtran is among the most secularly challenged of the group, the pre-announcement will raise near-term investor concerns for Alcatel-Lucent, S.A. (NYSE: ALU) Juniper (NYSE: JNPR), CIENA Corp (Nasdaq: CIEN), Tellabs Inc. (Nasdaq: TLAB) Infinera Corporation (Nasdaq: INFN) JDS Uniphase Corporation (Nasdaq: JDSU) and Finisar Corp. (Nasdaq: FNSR)
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 $19.16 yesterday.
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