UPDATE: Oppenheimer Initiates Sonus Networks with Outperform, $3 PT on Execution

Oppenheimer initiated its coverage on Sonus Networks SONS with a rating of Outperform and a price target of $3 a share. Oppenheimer noted, "Traditionally, the company has focused on media gateways. However, under a new management team, the company has turned its focus to the next-generation technology—session border controllers. By leveraging its customer base—over 150 carriers in 50 countries—it has been able to grow its market share in a market where we expect to see a ~20% CAGR through 2015. In addition, the company has launched an initiative this quarter to compete in the enterprise SBC space. Revenue growth will be offset by declines in the legacy media gateway business." Sonus Networks closed at $1.78 on Wednesday.