Steven Li, an analyst from Raymond James, maintained the Buy rating on Vecima Networks. The associated price target remains the same with C$18.00.
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Steven Li has given his Buy rating due to a combination of factors that highlight both the current strengths and future potential of Vecima Networks. The company has shown a strong start to the year with its first-quarter revenue exceeding expectations, reaching $71 million compared to the consensus of $69 million. Additionally, the adjusted EBITDA was robust, indicating solid operational performance.
Despite the anticipated short-term disruption from the Charter-Cox merger, which is expected to affect the March quarter, the impact is considered temporary. The company anticipates a strong recovery in deployments by the June quarter and continued growth into 2027. Furthermore, Vecima Networks has demonstrated resilience with a rebound in gross margins, and its manufacturing operations, primarily based in Canada, remain largely unaffected by potential tariff impacts due to USMCA agreements. These factors collectively contribute to the positive outlook and justify the Buy rating.
Li covers the Technology sector, focusing on stocks such as Quarterhill, The Descartes Systems Group, and Vecima Networks. According to TipRanks, Li has an average return of 4.1% and a 44.68% success rate on recommended stocks.