JPMorgan upgrades Calix on strengthening spending backdrop

JPMorgan upgraded Calix (CALX) to Overweight from Neutral with a price target of $90, up from $75. The firm cites a strengthening spending backdrop from broadband service providers for the upgrade. The analyst also sees a medium-term tailwind for Calix from its leverage to the Broadband Equity and Access Deployment program in unserved and under-served U.S. areas. Calix “continues to differentiate itself relative to other equipment providers through its focus on enhancing service levels,” the analyst tells investors in a research note. JPMorgan placed Calix on “Positive Catalyst Watch” into the Q4 earnings print on January 28 and investor day on February 24, which it sees as potential catalysts.