Jeffries Lowers Price Target on ADTRAN

Jeffries has published a research report on ADTRAN(NASDAQ: ADTN) with a revised price target of $38.00 for the digital communications company. Q2 expectations were as strong as results for the company, with customers of the company satisfied with results.

In the report, Jeffries writes that the company is still trying to cope with competition in the broadband market. Q3 guidance estimates have leveled off, with revenue estimates revised downward for 2012. "Adtran printed another strong quarter in Q2. Nonetheless, we're still inclined to look for a more attractive entry point in order to get more aggressive on the name. On a risk/reward basis, we'd rather see investors focus on Alcatel-Lucent (ALU, Buy $5.26), Juniper (JNPR, $31.03, Buy), and Calix (CALX, $21.32, Buy). We continue to rate Adtran shares a Hold." ADTRAN is still rated Hold with the price target now $38.00.

ADTRAN closed yesterday at $36.11.