Analyst Ryan Koontz of Needham reiterated a Buy rating on Calix (CALX – Research Report), retaining the price target of $50.00.
Ryan Koontz has given his Buy rating due to a combination of factors, including Calix’s solid competitive positioning and the company’s ongoing transition towards a software-centric business model. Despite a recent downturn in guidance and concerns about market demand from larger customers, Koontz believes in the company’s potential for margin expansion and growth in the mid to long term. The belief in an eventual market rebound, bolstered by government subsidies and capital inflows, supports his positive outlook on Calix’s stock performance.
Koontz’s optimism is also anchored in the anticipation of the Broadband Equity, Access, and Deployment (BEAD) program, which he expects will inject new capital into the market and drive significant growth for Calix in the calendar year 2025. While acknowledging the current macroeconomic headwinds and their impact on customer segments, he maintains a bullish stance on the stock, predicting a strong resurgence in growth that is likely to sustain until at least calendar year 2027. This forward-looking perspective, coupled with Calix’s consistent margin improvement and strategic shift towards software, underpins the Buy rating assigned by Koontz.
Koontz covers the Technology sector, focusing on stocks such as Calix, Harmonic, and Lantronix. According to TipRanks, Koontz has an average return of -11.0% and a 31.94% success rate on recommended stocks.
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Calix (CALX) Company Description:
Calix, Inc. provides cloud and software platforms, systems and services required to realize the unified access network. The firm offers broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers to transform their networks and connect to their residential and business subscribers. It enables communication service providers to provide a wide range of revenue-generating services from basic voice and data to advanced broadband services over legacy and next-generation access networks. The firm focuses on communications service providers access networks with the portion of the network, which governs available bandwidth and determines the range and quality of services that can be offered to subscribers. It also develops and sells carrier-class hardware and software products. The company was founded by Michael L. Hatfield and Carl E. Russo in August 1999 and is headquartered in San Jose, CA.
