Calix price target lowered to $42 from $95 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Calix to $42 from $95 and keeps a Buy rating on the shares. The firm notes Calix reported solid Q3 results and guided Q4 in line with expectations. However, management stated they now expect 2024 revenue growth to be towards the low-end of a 1%-4% sequential growth rate each quarter until government funding starts to materialize later in 2024. Craig-Hallum calculates this equates to about 5% year-over-year growth for the full year 2024, below the company’s long-term revenue growth target of 10%-15%.