UPDATE: Morgan Keegan Raises PT to $35 on ADTRAN

A report from Morgan Keegan reiterates its Market Perform rating and raises the price target from $30 to $35 on ADTRAN (NASDAQ: ADTN).

In the report, Morgan Keegan writes, “ADTRAN has altered its investment strategy and a higher risk style has boosted “Other Income” and therefore earnings. We maintain our Market Perform rating on ADTRAN and tweak estimates based on model refinement. We see the reduced Street estimates as reasonable as well as the valuation at14x pro forma earnings per share."

ADTRAN is currently trading down $0.36 from its $31.87 closing price on Friday.