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| Wednesday, October 11, 2006 |
Network equipment maker Adtran Inc. shares got a boost in morning trading on Wednesday after an analyst upgraded the stock on the belief that the company won a lucrative contract with AT&T Inc.
Morgan Keegan analyst Simon Leopold upgraded Adtran to "Outperform" from "Market Perform."
"We believe Adtran has won a new contract with AT&T for optical systems worth $40 million to $50 million (nearly 10 percent of our 2006 sales estimate)," Leopold wrote in a note to clients. "With the AT&T deal, we now see an improved growth outlook and presume that additional customers will sign similar deals improving growth further."
Leopold lifted his 2007 sales estimate to $564 million from $553 million, while analysts polled by Thomson Financial expect the company to report, on average, $556.7 million in revenue.
Shares of Adtran, which have traded between $19.96 and $32.87 over the last year, were up 88 cents, or 3.9 percent, at $23.66 in morning trading on the Nasdaq. |
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