NEW YORK ( TheStreet) -- Shares of JDS Uniphase (JDSU - Get Report) broke to fresh multi-year highs on Wednesday as optimism continued to surround the stock following last week's strong earnings report.
The stock closed the regular session at $24.42, up 7%, on volume of 25.1 million, more than four times its three-month trailing daily average of 5.4 million. This latest burst follows the shares pushing above $20 for the first time since mid-2007 on Friday after the company delivered
blowout fiscal second-quarter numbers after Thursday's close.
At current levels, the shares have more than doubled since early September and are up 180% in the past 52 weeks, leaving their respective 50-day and 200-day moving averages of $16.55 and $12.86 in the dust.
For investors who've ridden the stock up, the question becomes how much higher can it go. Wall Street is bullish with nine of 13 analysts covering the shares at strong buy (6) or buy (3), and there's a feeling that the company is well-positioned to benefit as the major network providers like AT&T (T - Get Report) and Verizon Communications (VZ - Get Report) bulk up traffic capacity as Web usage continues to surge thanks to smartphones and tablets. The trend should boost demand for both JDS Uniphase's test and measurement products and its optical components."There are few things that can move JDSU's fundamentals as much as a major network upgrade," said Miller Tabak & Co. in a research note last week launching coverage of the stock with a buy rating and $28 12-month price target. "Our work in the field over the last several months has identified a number of major Tier 1s that are likely to do a major network upgrade to 40G/100G over the next two years." The firm identified both AT&T and Verizon along with BT Group (BT), Deutsche Telekom and NTT as companies that are "among the highly probable buyers of