UPDATE: Citi Lowering Price Target On JDS Uniphase

Citi Investment Research is out with a research report on JDS Uniphase JDSU after it reported earnings last night, and is lowering its price target to $15 from $21. It has an Overweight rating on shares. In a note to clients, Citi Investment Research writes, "JDSU went one-for-two in FQ4, printing a solid topline beat with in-line EPS but guided well below the consensus estimates. The below Street guidance was due primarily to weak Test & Measurement forecasts and inventory overhang in optics, but management did note bookings were starting to pick up in August. We believe this reinforces our belief that the correction is coming to an end and we believe order growth is likely to resume toward the end of the year. A re-acceleration in optical component demand coupled with favorable broadband and mobility trends in CommTest positions JDSU for long term growth. While we still have not seen the "all clear" signal in optics, we believe the favorable bookings comment is an indication of a near-term turnaround." Shares of JDSU lost 21 cents yesterday to close at $11.70.