Shares of Arris Group Inc. jumped Tuesday after Needham & Co. upgraded the provider of equipment for the cable industry, predicting a growth spurt led by international sales and new products.
Arris shares climbed 96 cents, or 8.4 percent, to $12.38 in afternoon trading. The stock has ranged from $6.15 to $13.75 over the past year.
Needham analyst Greg Mesniaeff raised his rating to "Buy" from "Hold." In a note to clients, he wrote that as spending by cable providers on broadband equipment in the U.S. wanes, Arris will have to increasingly look abroad to drive sales.
He wrote that the company won "sizable orders from key customers in Latin America and in Europe" in the fourth quarter that will contribute to revenue this year.
He also pointed to the company's acquisition of set-top box maker Diego Inc. Mesniaeff said the deal will give Arris a range of new products to compete with rivals including Cisco Systems Inc., Motorola Inc. and TiVo Inc.