February 22, 2024

Northland’s Top 2022 Picks Comprise Adtran, Harmonic – Read Why – Adtran (ADTN), Harmonic (HLIT)

Northland analyst Tim Savageaux listed Adtran Inc (NASDAQ:ADTN) as one of his top picks for 2022.

  • Savageaux reiterated his recently raised price target of $35, implying 50.5% upside, and Outperform rating.
  • Savageaux cited indications of continued strong 10G PON and market demand from U.S. rural and European alternative carriers.
  • Like his other top pick Harmonic Inc (NASDAQ:HLIT), Adtran’s valuation “compares extremely favorably” with rural fiber competitor Calix Inc (NYSE:CALX).
  • Savageaux raised the price target on Harmonic to $17 from $15, implying 42.3% upside, and reiterated Outperform. Savageaux noted Harmonic “is set for a breakout year.”
  • Back-to-back analyst days from CommScope Holding Co Inc (NASDAQ:COMM) and Casa Systems Inc (NASDAQ:CASA) saw them “effectively raising the white flag in next-gen visualized Cable Access.” 
  • Additionally, Harmonic’s “commanding leadership in next-gen visualized and distributed Cable Access has become much clearer.”
  • Price Action: ADTN shares traded higher by 1.84% at $23.25, and HLIT shares traded higher by 1.62% at $11.95 on the last check Monday.

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