Jefferies reiterates Buy rating on Calix after ‘solid’ results and guidance

Jefferies analyst George Notter says the firm’s thesis is unchanged after Calix reported “solid” Q3 results and Q4 guidance, noting that its gross margins were “particularly strong” for the second quarter in a row. The firm continues to believe the Calix Cloud software story will drive significant long-term upside to EPS power and that the hardware side of the business will continue to drive robust results, the analyst tells investors in a post-earnings note. Jefferies has a Buy rating and $90 price target on Calix shares.