Tech Conference Preview: Telecommunications Equipment And Handsets

With the 17th Annual Technology Conference quickly approaching, Citi released a preview of the Telecommunications Equipment and Handsets sector. Analysts stated, “For telecommunications equipment and handset investors, insights into end market demand and company-specific 2H10-2011 fundamental and financial prospects will be showcased. More broadly, ~100 technology company presentations (OEM, EMS, distributor, semiconductors, equipment, software, etc) will flesh out customer and enterprise end demand dynamics as well as contemporary supply chain conditions.” Citi also added, “Our top Buy rated picks are Adtran (ADTN), Brightpoint (CELL), and Motorola (MOT) while we maintain our Sell rating on Research in Motion (RIMM). Adtran remains a key beneficiary of healthy capex spend domestically and the US Broadband Stimulus funds which will be deployed over the next 2 to 3 years. Brightpoint should benefit from cyclical recovery in handset unit demand & margin accretive restructuring efforts. Motorola to benefit from Android adoption and making progress toward split up of the company and profitability of its handset segment. RIMM faces promotion commotion, sandboxing and BYOD challenges.”