UPDATE: JP Morgan Initiates ADTRAN at Neutral; Too Early to Call Bottom on Core Business

JP Morgan initiated coverage on ADTRAN

with a Neutral rating and a $19 price target. JP Morgan noted, "While ADTRAN could benefit from FTTx and fiber access spending in 2013 we are concerned that the company's core businesses continue to decline. We also note that the stock trades on a peer average sales multiple of 1x our 2013 estimate while having a higher risk profile in our opinion. 2013 may finally be theyear that the great telco spending drought ends but we believe it is too early to determine whether ADTRAN will benefit." ADTRAN closed at $19.30 on Thursday.