A 9% rally in JDS Uniphase (NasdaqGS: JDSU) was set to lift an exchange traded fund (ETF) that invests in telecom and data networking companies.
JDS Uniphase after Wednesday’s closing bell said it swung to a quarterly profit that beat analyst expectations. The company’s outlook was also better than expected, said analysts at Evercore Partners, which earlier this year upgraded the stock to overweight . It has a $25 price target on the stock.
“The thesis for our upgrade in February was based on confidence in JDSU’s diversified product portfolio, share gains with Huawei, and market share gain opportunities, which appear to be playing out,” Evercore said in a note.
JDS Uniphase accounts for nearly 5% of iShares S&P North American Technology-Multimedia Networking Index Fund (NYSEArca: IGN). The ETF’s tracking index includes companies that are producers of telecom equipment, data networking and wireless equipment.
iShares S&P North American Technology-Multimedia Networking
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