SONS - Lower Guidance For 2010 Masks Improving Fundamentals

Analyst Edward Jackson of Cantor Fitzgerald maintains his "buy" rating on Sonus Networks (NASDAQ: SONS), while reducing his estimates for the company. The target price for SONS is set to $3.25.

Sonus Networks reported its Q4 results ahead of expectations. SONS has issued its 2010 guidance below expectations, which “actually calls for a return to sales growth once adjustments are made for the company's AT&T (NYSE: T, NC) revenue recognition policy,” the analyst says.

“We continue to sense that Sonus is positioned to turn the corner and that the pieces are in place for a return to sales growth and sustained profitability,” the analyst adds. Cantor Fitzgerald has reduced its EPS estimates for 2010 and 2011 from $0.03 to $0.00 and from $0.01 to -$0.01, respectively.

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