Viavi price target lowered to $11 from $13.50 at B. Riley

B. Riley analyst Dave Kang lowered the firm’s price target on Viavi to $11 from $13.50 and keeps a Neutral rating on the shares. The company lowered its fiscal Q3 revenue outlook, mainly due to reduced demand from network equipment manufacturers, the analyst tells investors in a research note. After further checks, the firm believes most of the weakness came from the optical and wireless segments. While this is the first phase of a slowdown due to inventory correction by customers, there could be a second phase of a slowdown, which could be more severe than the first phase, B. Riley says.