Ryan Koontz, an analyst from Needham, reiterated the Buy rating on Clearfield. The associated price target was lowered to $45.00.
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Ryan Koontz has given his Buy rating due to a combination of factors that highlight Clearfield’s potential for future growth. The company reported solid financial results for the fourth quarter of fiscal year 2025, with revenue slightly exceeding expectations. Despite a temporary setback in earnings per share due to a write-down from a divested business unit, Clearfield’s core operations are projected to grow, driven by increased demand from Tier 2 telecommunications companies and multiple system operators.
Koontz also notes that while there are challenges such as delays in government projects and potential fiber shortages, the upcoming BEAD spending is expected to significantly boost Clearfield’s growth. The divestiture of the Nestor business unit is seen as a strategic move to refocus on core growth areas, positioning the company for a strong recovery and a return to over 20% year-over-year growth. Consequently, Koontz maintains a Buy rating, reflecting confidence in Clearfield’s long-term prospects.
In another report released yesterday, Lake Street also maintained a Buy rating on the stock with a $52.00 price target.