Jefferies reveals top broadband plays, sees 5 years of strong growth

Jefferies analyst George Notter says that in the wake of recent concerns about forward-looking growth rates for Calix (CALX) and others, the firm refreshed its view of the available total addressable market for fiber to the premises broadband services in the U.S.. Based on an analysis of recent FCC data, Jefferies believes the market has at least five strong years of growth ahead. The firm’s favorite broadband-themed stock plays are Calix, CommScope (COMM) and Harmonic (HLIT). Jefferies believes the available new fiber to the premises market is around 28.5M households in the U.S. alone. At the current pace of deployment, it will take at least another five years to fully resolve the "Digital Divide issue" in the United States, the analyst tells investors in a research note. Broadband deployment remains one of the firm’s favorite themes in the space.