Roth MKM cuts Calix target, sees shares bottoming near current levels

Roth MKM lowered the firm’s price target on Calix to $43 from $50 and keeps a Buy rating on the shares. The analyst says “more muted” deployment patterns around broadband service provides have translated to more muted spending with an in-line Q1 for Calix and a 12% step down of Q2 guidance, the analyst tells investors in a research note. Importantly, smaller broadband service provides are seeing green shoots with further expansion expected in the second half of 2024, translating to Calix calling a Q2 bottom, the analyst tells investors in a research note. Roth believes the shares should find a bottom near current levels and it would use the weakness as an entry point.