Northland cuts Calix target, sees ‘historically attractive’ share levels

Northland lowered the firm’s price target on Calix to $60 from $80 and keeps an Outperform rating on the shares following the Q3 report. The shares at trading at April 2022 levels despite the company’ earnings power nearly doubling over that time period with quarterly revenue up 50%, the analyst tells investors in a research note. The driver of Calix’s slower growth and modest estimate cuts in in the first half of 2024, the Broadband Equity, Access, and Deployment program, is “likely to morph into a major positive catalyst,” says the firm. As such, Northland sees an attractive a buying opportunity, saying Calix is trading at “historically attractive valuation levels.”