Adtran Rating Lowered to Neutral at Zacks (ADTN)
Adtran (NASDAQ:ADTN) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued on Monday, Analyst RN reports. They currently have a $28.00 target price on the stock. Zacks‘ price objective suggests a potential upside of 4.59% from the company’s current price.
Zacks‘ analyst wrote, “We are downgrading our recommendation on ADTRAN to Neutral based on its high level of current valuation. The stock price has soared more than 74% in the last year and currently provides limited opportunity for above market gain. Meanwhile, ADTRAN continues to perform well owing to solid contributions from its Internetworking and Broadband Access product divisions. The company benefits from an improved spending atmosphere and increased strategic investments by ADTRAN’s carrier customers. The company has stabilized its businesses with the Tier 1 carriers, while generating contracts from Tier 2 carriers. The Enterprise division complements with strong sales of IP gateway and switch products. We expect ADTRAN to benefit from market share gain, new product offerings, strong international sales and growing service revenues. We believe that free cash flow will also remain steady in the near future. “
Several other analysts have also recently commented on the stock. Analysts at MKM Partners raised their price target on shares of Adtran from $22.00 to $24.00 in a research note to investors on Thursday, September 12th. They now have a “neutral” rating on the stock. Separately, analysts at Thomson Reuters/Verus downgraded shares of Adtran from a “buy” rating to a “hold” rating in a research note to investors on Monday, July 22nd. Finally, analysts at UBS AG cut their price target on shares of Adtran from $19.00 to $18.00 in a research note to investors on Thursday, July 11th. They now have a “sell” rating on the stock. Six research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has given a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $20.88.
Adtran (NASDAQ:ADTN) traded up 1.34% during mid-day trading on Monday, hitting $27.13. 371,871 shares of the company’s stock traded hands. Adtran has a 1-year low of $15.38 and a 1-year high of $27.92. The stock has a 50-day moving average of $26.06 and a 200-day moving average of $23.85. The company has a market cap of $1.579 billion and a price-to-earnings ratio of 54.19.
Adtran (NASDAQ:ADTN) last announced its earnings results on Tuesday, July 9th. The company reported $0.17 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.16 by $0.01. The company had revenue of $162.23 million for the quarter, compared to the consensus estimate of $154.16 million. During the same quarter in the prior year, the company posted $0.33 earnings per share. The company’s quarterly revenue was down 11.8% on a year-over-year basis. On average, analysts predict that Adtran will post $0.69 earnings per share for the current fiscal year.
ADTRAN, Inc designs, manufactures and markets solutions and provides services and support for communications networks.
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