Needham keeps $88 target on Calix, sees ‘strong positives’ after report

Needham analyst Ryan Koontz says Calix’s beat and raise for Q1 "impressed against a backdrop of negative recent industry sentiment." The analyst highlights the company’s "strong" execution and "sizable" competitive lead in its transformation to a software company as "strong positives." The firm sees upside to 2023 sales and margin estimates, driven by a "massive" U.S. rural fiber build, and calls Calix its top pick in the space. Needham has a Buy rating on the shares with an $88 price target.