Bank of America Merrill Lynch Comments on Adtran

Bank of America Merrill Lynch has published a research report on Adtran

The report notes that Adtran's 2Q11 results exceeded estimates. In the report, Bank of America Merrill Lynch commented, "Broadband Access grew 48% QoQ driven by FTTN (Telmex) and robust uptake for the TA5000, more than offsetting a 17% QoQ decline in HDSL. The silver lining is that HDSL sales look to be at a bottom. Wireless related HDSL are unlikely to be a significant headwind to growth as it is currently an immaterial portion of sales, while the remaining business in HDSL, which is legacy wireline for enterprise, should decline but at a modest pace and over several years." Bank of America Merrill Lynch rated Adtran a BUY with a price objective of $50.00. Adtran closed yesterday at $36.11.