Jefferies believes AT&T (T) will soon select a vendor for equipment used to upgrade the old Fiber-to-the-Curb, or FTTC, infrastructure that was deployed in the heritage BellSouth territory. The firm estimates the opportunity at $50M over two-to-three years and thinks Adtran has a less than 25% chance of winning the business. Further, Jefferies thinks issues of carrier capital spending trends and potential market share losses are not fully priced into shares of Adtran. The firm keeps an Underperform rating on the stock with a $13.25 price target.
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