Adtran price target lowered to $7 from $8 at Northland

Northland analyst Tim Savageaux lowered the firm’s price target on Adtran to $7 from $8 and keeps a Market Perform rating on the shares, noting that the company guided Q4 revenue “much lower,” or down another 17% sequentially, driven by weakness in Tier 1 optical transport revenue in Europe. The company also announced major cost cuts and cash generating plans aimed at strengthening the balance sheet and a return to profitability in Q2 of 2024 at “much lower than historic revenue,” the analyst added.