Calix price target lowered to $35 from $45 at Rosenblatt

Rosenblatt lowered the firm’s price target on Calix to $35 from $45 and keeps a Buy rating on the shares post the Q1 report. Calix guided Q2 meaningfully below consensus on new delays by large and medium broadband service providers, the analyst tells investors in a research note. The firm says some customers have extended spending plan evaluations later into 2024, and others have decided to focus on adding new subscribers to existing networks rather than aggressively building new footprint this year. However, the Calix thesis has not changed, contends Rosenblatt. The firm says the Broadband Equity, Access, and Deployment program should be a “significant positive driver” by 2025 with 10%-15% annual growth starting in 2025 still looking correct for Calix.