Citi Bullish On JDS Uniphase (JDSU)

Citi Investment Research & Analysis analyst Kevin J Dennean reiterated his Buy rating for shares of JDS Uniphase Corporation (Nasdaq: JDSU), with a price target of $17.50 per share.

Dennean reiterated the rating after two days of meetings with JDS Uniphase Corporation's management.

He said that he came away from the meetings with "increased conviction in CommTest fundamentals" and that he expects healthy growth for at least the next few quarters.

The Citi Investment Research & Analysis analyst wrote, "remain Buyers of JDSU and reiterate $17.50 target price. We continue to believe all 3 growth engines – secular (CommTest), cyclical (Commercial & Comm. Optical Components), & steady (Adv. Optical Technologies) – will fire in synch over next 12-18 months leading to significant top-line growth, OM% expansion & continued positive EPS revisions. While our two days of management meetings increase conviction in our call, we fully acknowledge that many will adopt wait & see approach, & expect shares to likely trade sideways through 4QFY10 (June) earnings (likely mid-August). We would use pullbacks to aggressively add to/initiate new positions."