Analyst Ryan Koontz from Needham maintained a Buy rating on Clearfield (CLFD – Research Report) and keeping the price target at $50.00.
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Ryan Koontz has given his Buy rating due to a combination of factors including Clearfield’s solid financial performance and positive future prospects. The company reported strong first quarter results, with earnings per share exceeding expectations, despite revenue falling slightly short of consensus estimates. The gross margin was significantly better than anticipated, and management expects further improvement following a temporary low point in the second quarter.
Additionally, Clearfield is witnessing an improving trend in its Large Regional segment sales, with notable contributions from key customers. The company’s future growth is projected to be supported by E-ACAM subsidies and the exhaustion of customer inventories, providing a pathway to consistent double-digit growth. Looking further ahead, the anticipated impact of the BEAD program is expected to drive accelerated growth in the coming years. These factors collectively support the Buy rating and a price target of $50.
According to TipRanks, Koontz is a 4-star analyst with an average return of 3.0% and a 48.34% success rate. Koontz covers the Technology sector, focusing on stocks such as Ceragon Networks, Clearfield, and Ciena.
In another report released yesterday, Lake Street also maintained a Buy rating on the stock with a $44.00 price target.