Needham & Company Raises Price target on ADTRAN, Inc. (ADTN) Following 1Q Report
Needham & Company maintained a Buy rating on ADTRAN (NASDAQ: ADTN), and raised the price target to $22.00 (from $21.00), following the company's 1Q earnings report. ADTN reported revenue of $142.2MM, exceeded consensus of $141.1MM. EPS was reported at $0.14, ahead of the Street's $0.11 estimate.
Analyst Richard Valera commented, "ADTN delivered solid 1Q16 results driven by strength in its NA BBA business and offered forward commentary consistent with the bullish tone struck in 4Q15, especially as it relates to what is expected to be a multi-year broadband cycle in NA. We continue to believe ADTN will see improving results as 2016 progresses, benefiting from ramp of CAF 2 funds and potentially other programs, such as Centurylink's vectoring. In 2017, we expect further growth from the 2nd phase of CAF 2 and ramp of a new AT&T program. We maintain our Buy rating; PT nudged up to $22 (was $21), or 16x our ex-cash '17 NG EPS."
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Shares of ADTRAN closed at $19.05 yesterday.