Adtran upgraded to Buy at Rosenblatt as growth returns
The Fly

Adtran upgraded to Buy at Rosenblatt as growth returns

Rosenblatt upgraded Adtran (ADTN) to Buy from Neutral with a price target of $10, up from $6. Q3 revenues were slightly better than expected, driven by Subscriber Solutions, where inventory has fully normalized, and the higher Subscriber mix in Q3 makes gross margins that beat the firm’s estimate by 150 basis points “even more impressive,” the analyst tells investors. Good margins were due to operational efficiencies and lower overhead on site and product consolidation, while inline Q4 guidance calls for the first meaningful quarter-over-quarter and year-over-year revenue growth in five quarters, the analyst added.

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App