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

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Earnings Scheduled For October 13, 2015
4 Telecom Stocks Northland Analyst Believes Will Outperform
Notable earnings after Tuesday's close (Seeking Alpha)

Goldman Sachs reiterated its Sell rating on ADTRAN (NASDAQ: ADTN) 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.

Latest Ratings for ADTN

Sep 2015Northland SecuritiesInitiates Coverage onOutperform
Apr 2015NeedhamDowngradesBuyHold
Apr 2015Goldman SachsDowngradesBuyNeutral

View More Analyst Ratings for ADTN
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Price Target Pre-Market Outlook Analyst Ratings


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