UPDATE: Morgan Stanley Maintains Overweight, Raises PT to $37 on ADTRAN

Morgan Stanley reiterates its Overweight rating on ADTRAN

and raises its price target on the stock to $37 as the company is a pure play on 2H carrier rebound. Morgan Stanley says, "With solid Q4 rev/EPS, equally solid Q1 guide, an under-appreciated acquisition that we believe should be highly accretive in '13, a low valuation and an active buyback putting a floor on the stock, we believe ADTN is a clean way to play the rebound in Tier 1 spending and Reiterate our Overweight. ADTN posted solid Q4 on revs of $175.3M, $2.4M ahead of our just below Street est of $172.9M, down 8.8% q/q but up 6.0% y/y, at better end of guide (-9-10% q/q) as weak carrier spend cont." ADTN closed at $33.98 a share on Wednesday.