Auriga Upgrades ADCT to “Buy”

Shares of ADC Telecommunications (NASDAQ: ADCT) were upgraded to “Buy” at Auriga this morning on the heels of better than expected earnings. Revenues were in line with Street estimates, but the bottom line beat the Street by $0.04 (beat Auriga’s estimates by $0.07). The upside was driven by improving gross margins and rigorous cost controls.

Auriga analysts believe that this trend continues and that margins will continue to accelerate given the continued build out of the telecommunications sector. AT&T (NYSE: T) and Verizon (NYSE: VZ) represent 40% of the company’s revenues.

Shares of ADC Telecommunications were trading higher to $8.47 in the pre-market. Auriga has a $10 price target on the stock.