Independent Research Group initiated coverage of Redback Networks with a “buy” rating and a $7 price target, adding that the recent falloff in the broadband-equipment provider’s stock could be an opportunity for long-term investors.
In his research report, IRG analyst Hampton Adams wrote that Redback’s large installed base, its highly scalable and reliable next-generation product position and recent deals with two of the top 20 digital subscriber line service providers put it in a strong position for growth.
The stock dropped to the $3-per-share range (from around $5) after Redback missed analysts’ third-quarter expectations, but the shares could be poised for a run-up, Adams wrote.
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