Story updated at 9:50 a.m. to reflect market activity.
Shares of Infinera gained 7.5% to $11.10 in morning trading.
The analyst firm raised its price target for the communication equipment company to $14 from $10.50. Jefferies lowered its EPS estimates for the company for 2014 to 25 cents a share from 26 cents a share, but raised its estimates for 2015 to 36 cents a share from 35 cents a share.
"We are raising our rating on Infinera shares from Hold to Buy as we believe the organization will have considerable success with their pending metro WDM product line," Jefferies analyst George Notter wrote. "Their metro WDM initiative, of course, will be announced next week at their Analyst meeting (September 18 in San Jose)."
Separately, TheStreet Ratings team rates INFINERA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate INFINERA CORP (INFN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."