Analysts’ Recent Ratings Updates for ADTRAN (ADTN)
Several investment firms have updated their stock ratings and price targets on shares of ADTRAN (NASDAQ: ADTN) in the last week:
- ADTRAN was given a new $17.00 price target on by analysts at Mizuho.
- ADTRAN was downgraded by analysts at Bank of America from a “buy” rating to an “underperform” rating. They now have a $15.00 price target on the stock, down previously from $30.00. They wrote, “Adtran now expects 3Q sales of $162mn and PF EPS of $0.18-0.19, well below Street’s $188mn/$0.32 and our estimate of $185mn/$0.32. … While it is not our preference to downgrade stocks after so much bad news has been priced in, the lingering volatility in carriers’ orders, which could last until 1H 13, makes it tough to call the timing of a trough in fundamentals and the stock. We are reducing forecasts for FY12 sales/EPS (excl options exp) from $691mn/$1.41 to $642mn/$1.12 and FY13 from $784mn/$1.68 to $678mn/$1.09 (Street: $781mn/$1.53). Our new PO of $15 is based on 11x our FY14 EPS estimate.”
- ADTRAN had its “underperform” rating reaffirmed by analysts at Jefferies Group. They wrote, “Even from the company’s current $162 million revenue run rate, we think there’s downside from: 1) potentially significant market share declines at CenturyLink and Frontier – the losses won’t really kick in until Q1 next year; 2) the degree to which HDSL can still decline (even from current levels) as wireless operators deploy LTE and existing HDSL equipment gets mined out of cell sites for re-use; and 3) the degree to which carriers are applying incremental pressure on legacy-, copper-, and TDM-based capital spending. We will revisit our estimates and target price following the company’s regularly-scheduled EPS call on October 10th.”
- ADTRAN had its price target lowered by analysts at Goldman Sachs to $14.00. They wrote, “We continue to believe carrier spending priorities have shifted away from access and copper-based spending, where Adtran derives the bulk of its revenues, toward wireless and core network upgrades. This is consistent with Adtran’s comment on legacy product weakness. Additionally, competitor Calix has also cited regulatory uncertainty as a source ongoing disruption. We believe Adtran’s gross margins took another step down, having fallen from nearly 60% in 1Q11 to 51% in 2Q12. We are lowering our FY12/13/14 EPS to $0.92/$1.10/$1.31 from $1.15/$1.41/$1.58 given weaker trends in Adtran’s end markets.”
- ADTRAN was downgraded by analysts at Argus from a “buy” rating to a “hold” rating.
- ADTRAN was downgraded by analysts at UBS AG from a “buy” rating to a “neutral” rating. They now have a $17.00 price target on the stock.
ADTRAN, Inc. opened at 16.67 on Friday. ADTRAN, Inc. has a 1-year low of $15.73 and a 1-year high of $38.95. The company has a market cap of $1.055 billion and a price-to-earnings ratio of 10.62.
ADTRAN, Inc. designs, manufactures and markets solutions and provides services and support for communications networks.