J.P. Morgan analyst Samik Chatterjee has maintained their neutral stance on CALX stock, giving a Hold rating on July 7.
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Samik Chatterjee has given his Hold rating due to a combination of factors influencing Calix’s current and future performance. The company’s revenue for the second quarter of 2025 exceeded expectations, driven by a significant increase in shipments to a medium-sized European customer, and this was complemented by the addition of new customers and a notable year-over-year growth in remaining performance obligations. These factors contributed to a stronger-than-expected earnings per share outcome.
Looking forward, Calix’s revenue guidance for the third quarter of 2025 is also above market expectations, indicating management’s confidence in sustaining the current revenue momentum. However, despite these positive indicators, Chatterjee remains cautious due to potential short-term demand fluctuations in the broader economic environment. While Calix is effectively capitalizing on long-term growth drivers, such as an increasing software mix and expanding gross margins, these macroeconomic uncertainties warrant a Hold rating as they could impact near-term performance.
Chatterjee covers the Technology sector, focusing on stocks such as Apple, Coherent Corp, and Ciena. According to TipRanks, Chatterjee has an average return of 13.0% and a 63.36% success rate on recommended stocks.
In another report released on July 7, Wolfe Research also initiated coverage with a Hold rating on the stock with a $0.00 price target.