Tellabs’ stock down on fear AT&T is switching to Cisco

by Shyam,source:reuters.com
Tellabs (NasdaqGS: TLAB) is feeling the pain of a Morgan Stanley analyst research note that says AT&T (NYSE: T) is going to make Cisco (NasdaqGS: CSCO) its preferred routing supplier of choice. Of course, the street did not like this news and punished Tellabs by driving down its shares more than 6.3 percent yesterday.

Ehud Gelblum, a Morgan Stanley analyst, wrote in a research note that AT&T is going to make a “relatively quick transition away from” Tellabs’ 8860 router to a Cisco platform sometime in 2011.