Thursday November 12, 06:34 PM
JDS Uniphase shares jump after Cramer's takeover comments
Nov 12 (Reuters) - Shares of telecom equipment maker JDS Uniphase Corp (NASDAQ: JDSU - news) rose as much as 13 percent on Thursday, a day after CNBC host Jim Cramer recommended the stock and said the company might make an attractive takeover target.
Cramer's comments were made on the day Hewlett-Packard Co made a move into the network equipment market by striking a $3.1 billion deal to buy 3Com Corp.
The strong business and cleaned-up balance sheet could turn JDS Uniphase into the next 3Com, the Mad Money blog reported Cramer as saying.
JDS is at a veritable sweet spot, selling the test and measurement equipment and services that wireless carriers need to build out their broadband and wireless networks, Cramer said.
Cramer also said new infrastructure is in great demand in the telecom space.
The CNBC host based his comments on Sanford Bernstein analyst Jeff Evenson, who according to the blog, took a bullish stance on the company after its strong quarterly performance.
Evenson raised his price target on JDS stock to $8.50 from $8.
More than 19 million shares of JDS Uniphase changed hands by 1305 ET, compared with the 10-day average volume of 4.9 million shares.
Shares of the company were trading up 10 percent at $7.95 in midday trade Thursday on Nasdaq (NASDAQ: news) . They touched a high of $8.16 earlier in the day.
(Reporting by Shrutika Verma in Bangalore; Editing by Unnikrishnan Nair) Keywords: JDSUNIPHASE/SHARES
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