Calix price target lowered to $50 from $60 at Northland

Northland lowered the firm’s price target on Calix to $50 from $60 and keeps an Outperform rating on the shares. The uncertainty the firm had noted in its preview around rural fiber demand was evident in the company’s mixed Q4 report and outlook, says the analyst, who notes that the company cited broad based slowness among smaller carriers in front of BEAD funding for its “significantly” lower than expected Q1 and calendar 2024 outlook. Select larger customer spending pauses are a driver for a down year in 2024, but BEAD is “a major positive catalyst” into calendar 2025, which is expected to rebound to typical 10%-15% growth, the analyst added.