UPDATE: Jefferies Downgrades ADTRAN to Hold, Lowers PT to $29.75

Jefferies lowers its rating on ADTRAN (NASDAQ: ADTN) to Hold from Buy and lowers its price target to $29.75 from $36, as company's Albatross acquisition presents a notable change in strategy and places doubts on previous growth assumptions.

Jefferies notes, “The acquisition presents a major change in growth strategy for Adtran, in our view. The company's willingness to engage in such a risky transaction makes us question our longer term growth assumptions on the core business.”

ADTN closed at $28.59 per share on Tuesday.