Adtran (ADTN) Gains from Broadband Recovery and European Demand, Says B. Riley

Adtran Holdings Inc. (NASDAQ:ADTN) is one of the best tech stocks under $10 to invest in. On September 18, B. Riley Securities analyst Dave Kang initiated coverage of the stock with a Buy rating and a $16 price target. He based his Buy rating on Adtran’s leadership in broadband network equipment and likes the company’s strength, as it serves a wide range of customers, including service providers, utilities, and local governments.

The analyst believes that the demand in the industry has recovered after several quarters of weakness caused by inventory correction. In his view, Adtran is well-positioned to benefit, as its access and optical networking products are expected to drive growth as broadband investment picks up.

The company now has a total addressable market of $14 billion thanks to the recent acquisitions. The analyst expects Adtran Holdings Inc. (NASDAQ:ADTN) to benefit from a strong demand in Europe. The company has significant exposure in Europe, and the analyst highlighted cross-selling opportunities that could help the company grow its market share. He also noted that the company is optimizing its portfolio of assets, including the sale of certain assets, to fortify its balance sheet.

Adtran Holdings Inc. (NASDAQ:ADTN) is a networking and communications solutions company. It provides software, systems, and services focused on the broadband access and optical networking markets.

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Disclosure: None. This article is originally published at Insider Monkey.