Calix estimates to move ‘meaningfully higher’ after strong Q1, says Needham

Needham analyst Ryan Koontz says Calix (CALX) reported “strong” Q1 results and guided Q2well above consensus. The company continues to “impressively execute on its software-centric model,” as evidenced by “very strong” remaining performance obligation growth, the analyst tells investors in a research note. Needham sees an improving competitive environment and “robust spending” by broadband experience providers driving increasing Calix U.S. market share, independent of delayed or revised Broadband Equity, Access and Deployment program subsidies. It expects consensus fiscal 2025 and 2026 estimates to move “meaningfully higher” and keeps a Buy rating on the shares with a $53 price target