Adtran upgraded to Outperform as Northland sees ‘meaningful positives’ in Q1

As previously reported, Northland upgraded Adtran (ADTN) to Outperform from Market Perform with a price target of $7.50, up from $7. The company’s Q1 report, while mixed in terms of outlook, “offered some meaningful positives,” including strength in fiber Access Systems driven by small U.S. rural carriers, similar to what was seen with Calix (CALX) and Clearfield (CLFD), the analyst tells investors. The firm also cites ramps with major European Tier 1s and “much stronger gross margins,” driven by lower product costs.