Spirent Rises as Numis Urges Buy on Network Spend: London MoverFinbarr Flynn
Spirent Communications Plc, a maker of testing equipment for phone systems, rose the most in 15 months as investors bet on a revival in spending on networks and Numis Securities recommended investors buy the stock.
Spirent climbed 7.7 percent in London to 134 pence, the most since March 1, 2012, and breaking a five-day losing streak. The Crawley, England-based company was the fourth biggest gainer on the FTSE-All Share index while the volume of shares traded was more than double the three month daily average.
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., 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 has historically provided testing facilities for telecommunications providers such as BT Group Plc, AT&T Inc. and Verizon Communications Inc.
The stock is down 11 percent this year, giving the company a market value of 862 million pounds ($1.3 billion).