UPDATE: Goldman Sachs Reduces PT to $14 on ADTRAN on Negative Pre-Announcement

Goldman Sachs reiterated its Sell rating on ADTRAN

and lowered its price target from $14 to $18. Goldman Sachs noted, "We continue to believe carrier spending priorities have shifted away from access and copper-based spending, where Adtran derives the bulk of its revenues, toward wireless and core network upgrades. This is consistent with Adtran's comment on legacy product weakness. Additionally, competitor Calix has also cited regulatory uncertainty as a source ongoing disruption. We believe Adtran's gross margins took another step down, having fallen from nearly 60% in 1Q11 to 51% in 2Q12. We are lowering our FY12/13/14 EPS to $0.92/$1.10/$1.31 from $1.15/$1.41/$1.58 given weaker trends in Adtran's end markets." ADTRAN closed at $19.16 on Thursday.