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UPDATE: Citigroup Downgrades ADTRAN to Sell on Wireline Demand Weakness

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Citigroup reduced its rating on ADTRAN (NASDAQ: ADTN) from Neutral to Sell and lowered its price target from $17 to $12.50.

Citigroup said, "Although, in our view, ADTN has been among best managed franchises in telecom equipment, we believe it faces challenges in its mainstay wireline access franchise and downgrade shares to Sell with a $12.50 target price based on our below-consensus EPS and a 14x target P/E. Tepid demand in wireline access drives a more conservative outlook and our expectation of P/E compression from current 25.4x P/E, which we see as an unsustainable 100% premium vs. S&P 500."

ADTRAN closed at $19.68 on Tuesday.

Latest Ratings for ADTN

DateFirmActionFromTo
Jul 2014MKM PartnersMaintainsNeutral
Jul 2014UBSMaintainsNeutral
Apr 2014JefferiesMaintainsUnderperform

View More Analyst Ratings for ADTN
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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