Advanced Fibre Communications (Nasdaq: AFCI) climbed 9 percent Wednesday after an upgrade from SG Cowen boosted yesterday's bullish forecast by BancBoston Robertson Stephens.
Shares in the company which sells digital loop carriers (DLCs) and related local loop access infrastructure equipment to telecommunication service providers worldwide had slowed down, up just 1 3/8 to 20 15/16 in late morning trading.
SG Cowen increased its rating from "buy" to "strong buy." Analyst Jim Kedersha wasn't immediately available for comment.
BancBoston Robertson Stephens senior networking/communications analyst Paul Silverstein reiterated his "buy" rating on the stock Tuesday.
"We believe the company is on track to deliver a solid September quarter, with upside to our 7 cents a share earnings estimate," said Silverstein in a report. "We believe that Advanced Fibre is well positioned to benefit from robust infrastructure growth in the first/last mile of communication service providers' networks."
"Advanced Fibre's domestic business appears to be continuing its recovery, led by both the ongoing strength at Winstar, the large national wireless CLEC, and the continuing ramp of business at SBC Communications," Silverstein added. He also said sales opportunities outside of North America should contribute to the company's overall operating recovery in the December 1999 to March 2000 timeframe."
Advanced Fibre shares have been attracting bottom feeders for a while, but perked up recently on Cisco's purchase of Cerent. AFCI bought into Cerent for its SONET, or Synchronous Optical NETwork, technology - used in fibre optic rings, it is a critical technology that defines how information is packaged.
Reuters contributed to this report.