Rosenblatt cuts Calix target to $47, says earnings selloff overdone

Rosenblatt lowered the firm’s price target on Calix to $47 from $70 and keeps a Buy rating on the shares. The company changed its long-term revenue guidance on the Q3 earnings call, from 10% to 15% per year to 1% to 4% per quarter, which equates to 5% to 15% per year, the analyst tells investors in a research note. However, the firm thinks the 18% selloff on Tuesday on the disappointment was overdone, especially since the firm’s 2024 earnings estimates, that it discussed in-depth with management after the call, only dropped by 2c to $1.60 and 2025 only fell 4c to $1.90. The stock “may be in the penalty box for the next couple of quarters,” but should work after that, contends Rosenblatt.