Jefferies Maintains ARRIS' Hold Rating (ARRS)

According to a report by Jefferies, ARRIS Group (NASDAQ: ARRS) is currently in the midst of making changes to its business model, which may hold negative implications for its future.

Jefferies explains, “While ARRIS continues to be a beneficiary of burgeoning traffic on cable networks, we're concerned ARRIS' next generation of CMTS products increases uncertainty around the company's growth prospects.” Looking towards the second quarter, Jefferies says, “ARRIS now expects Q2 revenues to hit $260-280 million versus our $279 million projection (Street = $285 million).”

Jefferies has increased ARRIS' price target from $11.25 to $12 and maintains its Hold rating.

At closing yesterday, ARRIS was trading at $12.99.