UPDATE: J.P. Morgan Upgrades Tellabs

According to a research report published this morning, J.P. Morgan has upgraded Tellabs TLAB from Underweight to Neutral. In the report, J.P. Morgan commented, “We are upgrading our rating on Tellabs to Neutral from Underweight as Street estimates converge to ours and a better carrier capex outlook limits downside. We continue to believe that Tellabs will struggle to gain traction with new products. However, we are modeling significant H2/H1 growth in 2012 for core Transport and Broadband Data products as we expect H2/H1 seasonality to return to telecom capex. Even though we believe estimate downside is now limited for TLAB we prefer CSCO(OW), CIEN(OW) and ERIC(OW) as ways to participate in our better 2012 carrier capex thesis.” Tellabs closed yesterday at $3.93.