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JDSU rises as analyst lifts price target

Wed, 04/07/2010 - 8:10am
The Associated Press

LOS ANGELES (AP) – An analyst raised his price target on shares of communications equipment provider JDS Uniphase Corp., sending the stock modestly higher to a 52-week peak Tuesday.

RBC Capital Markets analyst Mark Sue increased his price target to $16 from $12, based on prospects that the company will integrate its acquisition of the network testing equipment business of Agilent Technologies Inc. earlier than previously expected.

The Agilent unit provides equipment to help monitor and troubleshoot networking gear. The deal is set to close in June.

Sue said the Agilent division has a higher gross margin, and that would help improve JDSU's corporate gross margin to 47 percent from 44.5 percent.

"Though JDS Uniphase will maintain a separate sales force near-term, we're modeling operating synergies longer-term as the company targets a similar customer base," he wrote.

Shares of JDSU climbed 43 cents, or 3.3 percent, to $13.44 in afternoon trading Tuesday. The stock earlier traded at $13.45, eclipsing a prior 52-week high of $13.07.

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