Updated from 8:32 a.m. EDT
was up 8.9% in early trading after Merrill Lynch upgraded the stock to accumulate from neutral.
Merrill said that while it is still too early to call a bottom, JDS Uniphase may be approaching the end of its inventory correction.
The stock's was up for a second day after the company said Monday taht its sales were stabilizing and its first-quarter revenue will be about $325 million. The consensus estimate is $357.4 million.
Also this morning, Lehman Brothers cut estimates on the company, based on JDS Uniphase's warning. Lehman said it now expects calendar-year 2002 earnings of 2 cents per share on sales of $1.36 billion. The consensus estimate for calendar 2002 EPS is 5 cents.