Jefferies says Calix business remains strong, sees ‘attractive opportunity’

Jefferies analyst George Notter spoke with Calix CFO Cory Sindelar following yesterday’s investor conference and views the recent share price weakness as an "attractive opportunity for investors." Calix has seen no signs of deceleration in its business, and noted that its end-market demand remains robust, Notter tells investors in a research note. While supply constraints remain challenging, the company is not experiencing any deterioration, adds the analyst. Potter points out that Calix made no changes to its Q4 guidance and reiterated its long-term revenue growth target of 10%-15%. Investors yesterday conflated overall industry shrinking book-to-bill and backlog metrics with a weakening demand environment for Calix creating risk to expectations, Notter writes. He reiterates a Buy rating Calix with a $90 price target.