Harmonic shares rise on upgrade

AP News
Posted: Dec 14, 2009 2:43 PM

Shares of Harmonic Inc., a provider of broadcast and video delivery systems, rose Monday after a CL King analyst upgraded the stock, citing positive factors including rising orders in India and China.

In a client note, CL King analyst Lawrence Harris raised his rating to "Accumulate" from "Neutral" and set a $7 price target for the stock, implying he expects the stock to rally 23 percent from Friday's close.

Harris said Harmonic's orders are growing in India and China, with increased business at Scopus, which is a broadcast company centered around emerging markets that Harmonic bought in March.

He also thinks Harmonic's encoder product orders are improving due to satellite cable operators offering more HD channels.

The analyst added that orders are starting to pick up for the company's access business, which had been "depressed" throughout this year. He said the change relates to a rise in video-on-demand and data traffic, which is leading cable operators to divide their fiber optic nodes.

Shares of the Sunnyvale, Calif., company rose 19 cents, or 3.3 percent, to $5.90 in afternoon trading. Over the past year, the company's shares have traded between $4.46 and $7.85.