Calix, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan Koontz from Needham maintained a Buy rating on the stock and has a $70.00 price target.
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Ryan Koontz’s rating is based on Calix’s impressive third-quarter performance, where the company exceeded revenue and earnings expectations significantly. The company achieved a second consecutive quarter of approximately 10% quarter-over-quarter revenue growth, alongside record gross margins and the best operating margins in four years, showcasing the strength of its software model.
Additionally, the growth in remaining performance obligations and current remaining performance obligations was noteworthy, with all customer segments experiencing over 20% year-over-year revenue growth. The large customer segment, in particular, saw a remarkable 243% year-over-year increase, likely due to the reclassification of T-Mobile’s rural acquisitions. Koontz also noted decreased competitive pressures and increased spending by broadband experience providers, which are likely to boost Calix’s market share and customer loyalty, especially with upcoming BEAD program subsidies. These factors contribute to the expectation of upward revisions in future estimates, supporting the Buy rating.
In another report released yesterday, Rosenblatt Securities also reiterated a Buy rating on the stock with a $0.00 price target.