Morgan Keegan Hikes ARRIS Group to Outperform
Morgan Keegan upgraded ARRIS Group (ARRS) to outperform from market perform, citing the communications technology company's recently announced fourth quarter results.
Among other things, analyst Simon Leopold noted a favorable shift in the company's product mix, increasing carrier cable spending, and the continued clearing of excess inventory for VoIP products. He says the company's recent first quarter forecast is well ahead of his estimates, which also suggests that the trends will continue. He raises his 70 cents 2006 EPS estimate to 95 cents and his $740 million revenue estimate to $777 million.