Needham & Company Downgrades ADTRAN (ADTN) to Hold

Needham & Company analyst Richard Valera downgraded ADTRAN (NASDAQ: ADTN) from Buy to Hold.

Valera commented, "While ADTN posted solid 4Q results aided by the re-emergence of Telmex, we see its sharp shift towards international in the wake of the loss of CTL's vectoring business as driving structurally lower margins and limiting earnings power. As well, while we had once seen opportunities with AT&T and VZ as potentially significant NA revenue opportunities, we now have little confidence either of these programs will ramp substantially over the near to medium term. As such, and in light of the strong post-earnings bounce in ADTN's shares, which leaves <10% upside to our prior price target, we are lowering our rating to Hold from Buy."

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 $14.69 yesterday.

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