Viavi upgraded to Buy from Hold at Stifel

Stifel upgraded Viavi Solutions to Buy from Hold with a price target of $13, up from $10. While the company is coming off of a challenging 2023, in which revenue declined 19% and non-GAAP earnings contracted 55%, “the worst is behind,” the analyst tells investors in a research note. The firm expects modest revenue recovery in 2024 with earnings likely to accelerate at a significantly faster rate as revenue normalizes. Stifel believes Viavi will play a role in its “broadening of AI” theme as the use of high-speed interconnect technologies accelerates and testing requirements become increasingly complex.