NEW YORK (TheStreet) -- JDS Uniphase Corp (JDSU) had its price target increased to $17 from $15 at MKM Partners following the telecommunication company's presentation at Analyst Day, where it explained the rationale for splitting off into two companies.
Analysts at the firm increased its price target and kept its "buy" rating to reflect the $9 billion in NOL carryfowards and the multiple for the spin-off company because it is a potential acquisition target.
Yesterday, the company announced it it will break up the company to create a separate company from its optical components unit, and another from its network testing equipment unit.
Shares of JDS Uniphase are down 0.19% to $13.35 in pre-market trading today.
Separately, TheStreet Ratings team rates JDS UNIPHASE CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate JDS UNIPHASE CORP (JDSU) 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 revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."