Calix price target lowered to $57 from $66 at Roth MKM

Roth MKM lowered the firm’s price target on Calix to $57 from $66 and keeps a Buy rating on the shares. The company’s “modestly better” than expected Q3 results and Q4 outlook continue to reflect “solid execution and healthy managed services dynamics,” the analyst tells investors. The company, however, acknowledged that it has not been immune to elevated inventory and said it expects sequential growth of 1%-4% over the next several quarters, leading the firm to now model 8%-9% growth in 2024 versus a prior forecast of 11%, the analyst said. Federal broadband subsidies, including $42.5B BEAD and $20B A-CAM funding, should translate to sales reacceleration in the second half of 2024, though the firm is “modestly revising” its calendar 2023 and 2024 estimates as it sees sales down and EPS “flattish.”