Needham analyst Ryan Koontz attributes the 14% selloff yesterday in shares of Calix to management’s commentary at his firm’s Growth Conference. However, Koontz says he heard "highly consistent messaging" from Calix CFO Cory Sindelar with respect to strong customer demand tempered by the company’s ability to deliver due to supply chain constraints. "Some investors, however, clearly shifted to a more negative sentiment," Koontz tells investors in a research note. He believes Sindelar was aiming to hold buy-side expectations in line with previous company guidance relative to the significant beat the company delivered in Q3. The selloff provides a "strong buying opportunity," writes Koontz, who previously named Calix his top pick for 2023. The analyst keeps a Buy rating on the shares with an $88 price target. The stock closed Wednesday down 14% to $59.85.
Published first on TheFly
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