Spirent Rises as Numis Urges Buy on Network Spend: London Mover
Spirent Communications Plc (MGNS), a maker of testing equipment for phone systems, rose the most in seven months as investors bet on a revival in spending on networks and Numis Securities recommended investors buy the stock.
Spirent (SPT) climbed as much as 6.5 percent in London, the biggest intraday rise since Nov. 8, and breaking a five-day losing streak. The Crawley, England-based company was the fourth biggest gainer on FTSE 250 index.
Spirent “will be moving into an improving business environment” in the second half, analysts at Numis including Nick James said in a note today. News from some of Spirent’s customers is improving and a revival in spending by companies on network infrastructure “may be in progress,” the securities company said, upgrading the stock to buy from hold.
Ciena Corp. (CIEN), a maker of communications-network equipment for phone carriers and other customers, jumped 17 percent in the U.S. yesterday after its third-quarter sales forecast topped analysts estimates. Increased investment in next generation network infrastructure to help cope with the huge growth in traffic from the use of smartphones, tablets and other applications may also help Spirent, according to Numis.
Spirent shares climbed 7.8 pence, or 6.3 percent, to 132.2 pence as of 11:40 a.m. in London. The stock is down 12 percent this year, giving the company a market value of 850 million pounds ($1.3 billion).
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