Needham analyst Ryan Koontz maintained a Buy rating on Calix today and set a price target of $60.00.
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Ryan Koontz has given his Buy rating due to a combination of factors, including Calix’s impressive financial performance and strategic positioning. The company reported strong second-quarter results, surpassing revenue and earnings per share expectations, and provided guidance for the third quarter that also exceeded consensus estimates. This performance was highlighted by significant quarter-over-quarter revenue growth and a record gross margin, demonstrating the effectiveness of Calix’s software-centric business model.
Additionally, Calix’s growth in its large and medium customer segments, particularly with major clients like Verizon, underscores its market validation and potential for further expansion. The company’s ability to maintain low days sales outstanding indicates efficient operations, while decreased competitive pressures and robust spending in the U.S. market are expected to enhance its market share. These factors, combined with Calix’s differentiated software offerings, suggest a promising trajectory for sustained earnings growth, justifying the Buy rating.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CALX in relation to earlier this year.