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Research Alert: CFRA Maintains Hold Opinion On Shares Of Adtran, Inc.

· 02/07/2021 19:07

12:00 AM EST, 02/08/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $5 to $18, applying an EV/sales multiple of 1.4x to our '21 estimate, a slight premium to its five-year historical average multiple at 1.1x, reflecting recent strong results. We increase our '21 EPS estimate by $0.02 to $0.40 and set '22's at $0.57. ADTN reported Q4 operating EPS of $0.11 vs a loss of $0.07, $0.04 above consensus. Q4 revenue increased 12.4%, with 18.6% growth in Network Solutions, partially offset by an 18% decline in Service and Support. Similar to Q3, growth was led by its continued success in the Tier 2 and regional broadband operator market in the U.S., which grew 85%, while demand for its fiber access and aggregation solutions also remains strong, increasing 98% in Q4. Supply chain constraints continue to result in extended lead times, which is expected to continue into '21, potentially adding to logistics costs.