Zacks upgraded shares of Arris Group (NASDAQ: ARRS) from a neutral rating to an outperform rating in a research note issued to investors on Monday. The firm currently has $21.00 target price on the stock.
Zacks’ analyst wrote, “We are upgrading our recommendation on Arris Group to Outperform backed by the company’s decision to acquire the cable set top box business of Motorola Mobility. We believe the proposed acquisition will transform the company as an integrated equipment supplier in the high-speed video and Internet delivery market. Both the top and the bottom lines of Arris are expected to benefit immensely from this acquisition. Initial market traction for Moxi gateway, E6000 converged edge router and Assurance software are encouraging. Arris continues to benefit as several cable TV operators are upgrading their own customer premises equipment with high-speed DOCSIS 3.0, and it has a healthy order backlog. Although the company’s fourth quarter of 2012 financial results fell below the Zacks Consensus Estimates, management provided a strong outlook for the ensuing first quarter of 2013. “
Shares of Arris Group traded up 1.11% during mid-day trading on Monday, hitting $17.34. Arris Group has a 52 week low of $10.74 and a 52 week high of $17.39. The stock’s 50-day moving average is currently $16.51. The company has a market cap of $1.977 billion and a P/E ratio of 37.28.
A number of other analysts have also recently weighed in on ARRS. Analysts at UBS AG raised their price target on shares of Arris Group from $15.50 to $16.50 in a research note to investors on Thursday, February 7th. They now have a neutral rating on the stock. Separately, analysts at Citigroup reiterated a neutral rating on shares of Arris Group in a research note to investors on Monday, December 24th. They now have a $17.00 price target on the stock, up previously from $15.50. Finally, analysts at Needham & Company raised their price target on shares of Arris Group from $15.00 to $18.00 in a research note to investors on Friday, December 21st. They now have a buy rating on the stock. They noted that the move was a valuation call.
Two analysts have rated the stock with a buy rating, one has given an overweight rating, and five have issued a hold rating to the company. Arris Group has a consensus rating of overweight and a consensus target price of $17.82.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.
