Morgan Stanley Opens 60-Day Research Tactical Idea on ADTRAN
Morgan Stanley has published a research report on ADTRAN (NASDAQ: ADTN) believing that the share price will fall over the next 60 days.
In the report, Morgan Stanley writes, "ADTN presented at our conference and it now appears that Q1 could be more back-end loaded than planned on continued weakness in carrier spending. Mngmnt also stated it has yet to see an upturn in carrier spending despite investor hopes to the contrary. Juniper's CFO, also presenting at our conference, agreed with Adtran's view on continued weakness in carrier spending. And Finisar also cited a cautious carrier capex environment on its conf call tonight and that the turn in capex spending has not yet started. This is all inline with our cautious carrier sector downgrade on Dec 19th and believe the recent rally in carrier exposed companies has been premature suggesting many of these stocks have gotten ahead of themselves."
Morgan Stanley maintains its Overweight rating on ADTRAN, which is currently trading down $1.90 from yesterday's $35.25 closing price.
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