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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (45013)	10/1/2008 5:25:50 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70981

Sept 18 (Reuters) - Robert W. Baird upgraded Adtran Inc (ADTN.O: Quote, Profile, Research, Stock Buzz) to "outperform" from "neutral," saying it expects the communications equipment provider's new product cycle to positively impact fundamentals. "Adtran's new products will be ramping at several Tier I and II carriers in the second half of 2008 through 2009. We believe this new product growth will offset the impact of weakening capex trends that other vendors are experiencing," analyst Kenneth Muth wrote in a note to clients. Carriers like AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz), Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz), Qwest Communications International Inc (Q.N: Quote, Profile, Research, Stock Buzz) and Embarq Corp (EQ.N: Quote, Profile, Research, Stock Buzz) will be the largest buyers of Adtran's new products -- OPTI 6100, TA 1100 and TA 5000 -- in near term, Muth added. "It's apparent that carrier capex is constricting, but this can be an advantage to Adtran as its equipment is typically priced 15 percent to 35 percent below its peers," said Muth. The analyst, who expects the company's results for the second half of the year to be in-line with Wall Street estimates, has a price target of $27 on the stock. Shares of the Huntsville, Alabama-based company closed at $19.82 Wednesday on Nasdaq. (Reporting by Arup Roychoudhury in Bangalore; Editing by Himani Sarkar) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))