ADCT Makes Substantial Progress In Restructuring Activities
Analysts at Jefferies & Co maintain their "buy" rating on ADC Telecom (NASDAQ: ADCT), while raising their estimates for the company. The target price for ADCT is set to $10.
ADC Telecom reported its FQ1 EPS ahead of the consensus and the estimates and revenues marginally short of expectations. ADCT has made significant progress in bringing its Networks Solutions segment back on track, the analysts say.
“We continue to believe that the Broadband Stimulus package is a positive future catalyst for ADC investors. Activity associated with the stimulus plan could begin in the summer/fall timeframe, with ADC recognizing revenues in late 2010 and through both 2011 and 2012,” the analysts mention. Jefferies & Co has raised its EPS estimate for FY10 from $0.45 to $0.48.
