Shares of JDS Uniphase (Nasdaq: JDSU) jumped 7 percent Thursday on bullish comments from PaineWebber and Lehman Brothers.
Near midday, JDS, which makes optical networking hardware, was up 15 3/4 to 251 1/4. JDS was rated a new ''buy'' in new coverage by analyst David Wong at PaineWebber. He gave the company 12-month target price is $330.00 per share.
Lehman Brothers said it was tilting its stock portfolio to growth companies. Jeffrey Applegate, chief investment strategist at Lehman Brothers, said the firm was selling its positions in telecom equipment maker Tellabs Inc. (Nasdaq: TLAB) and swapping them for JDS Uniphase.
The bullish outlooks for JDS are just the latest positive news for the company. Last month, JDS Uniphase exceeded the consensus estimate in the second quarter. The company reported fiscal second quarter of earnings of $66 million, or 18 cents per share, not counting amortization and one-time charges. First Call's survey of 34 analysts predicted a profit of 15 cents per share for the quarter ended Dec. 31.
Including writedowns of purchased intangibles and merger-related charges, JDS Uniphase lost $131 million, or 38 cents per share.
Second quarter sales rose to $282 million, a 119 percent improvement from $129 million in the year-ago period, when JDS earned $27 million, or 8 cents per share, on a pro forma basis. Revenue in the second quarter represented a 30 percent rise from $230 million in the previous period.
The earnings came just days after JDS bought E-Tek Dynamics (Nasdaq: ETEK) in a stock swap valued at $15 billion.
Reuters contributed to this report.