Calix deserves ‘significant valuation premium’ to peers, says Northland

Northland analyst Tim Savageaux reiterates an Outperform rating on Calix (CALX) with an $80 price target following the company’s better than expected Q1 report and outlook. While facing some of the same challenges as peers, the company’s platform based model and high touch customer engagement enabled "much more proactive and nimble financial execution against a backdrop of continued strong demand," the analyst tells investors in a research note. The firm says Calix continues to distinguish itself from peers across both the fiber access and broader communication technology spaces. Along with expanding gross markings and positive trends in software metrics, this warrants a "significant valuation premium" and recovery in shares pressured by the downside preannouncement by Adtran (ADTN), contends Northland.