UPDATE: Jefferies & Company Downgrades ADTRAN to Underperform, Lowers PT

In a report published Friday, Jefferies & Company downgraded its rating on ADTRAN ADTN from Hold to Underperform, and lowered its price target from $21.00 to $17.25. Jefferies noted, “The business faces numerous headwinds that will, in our opinion, make it difficult for Adtran to meet current expectations for 2013. We think the Street is missing; 1) potentially significant declines in Adtran's market share at CenturyLink and Frontier; 2) the degree to which the HDSL business can still decline (even from current levels); and 3) the degree to which carriers are applying incremental pressure on legacy-, copper-, and TDM-based capital spending.” ADTRAN closed on Thursday at $20.60.