WHAT'S NEW: AT&T looks to have cut its spending on its wireline business significantly beginning last month, Jefferies analyst George Notter wrote in a note to investors earlier today. As a result, companies that have the most exposure to AT&T's wireline business now face increased risk, the analyst warned. Companies in this category are Ciena (CIEN), Juniper (JNPR), ADTRAN (ADTN), Finisar (FNSR), JDS Uniphase (JDSU), and Alcatel-Lucent (ALU), Notter stated. He kept Hold ratings on Ciena, Juniper, and JDS Uniphase, kept Underperform ratings on ADTRAN and Alcatel-Lucent, and maintained a Buy rating on Finisar.
WHAT'S NOTABLE: JDS Uniphase and ADTRAN both recently announced new share repurchasing plans. Ciena is expected to announce its second quarter results on June 5.
PRICE ACTION: In early trading, Ciena fell 2.4% to $18.93, Juniper lost 0.5% to $24.35, JDS Uniphade slid 2% to $10.75, ADTRAN declined 2% to $22, Alcatel-Lucent slid 2.7% to $3.90, and Finisar was fractionally higher at $23.81.
Reporting by Larry Ramer.