Zacks Investment Research downgraded shares of Arris Group Inc. (ARRS) from OUTPERFORM to NEUTRAL on April 17, 2013, with a target price of $18.00.
We downgrade our recommendation on Arris Group to Neutral based on its high-level of current valuation. The stock price has soared more than 50% in the last year. We believe Arris is currently fairly valued. Nevertheless, the recent acquisition of the cable set top box business of Motorola Mobility is likely to transform the company as an integrated equipment supplier in the high-speed video and Internet delivery market. In our view, both the top and the bottom lines of Arris are expected to benefit immensely from this acquisition. Initial market traction for Moxi home gateway, E6000 converged edge router and Assurance software are encouraging. Arris continues to benefit as several cable MSOs continue to upgrade their respective customer premises equipments with high-speed DOCSIS 3.0 network. The company has a healthy order backlog. Management provided a strong outlook for the first quarter of 2013.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Arris Group Inc. (ARRS),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment