Needham & Company Starts Viavi Solutions (VIAV) at Hold

Needham & Company initiates coverage on Viavi Solutions (NASDAQ: VIAV) with a Hold rating.

Analyst Alex Henderson commented, "Viavi Solutions is the Test and Measurement and Security tints for currency part of the former JDSU. We view the company as reasonably attractive but lacking a clear catalyst at this point. We see Viavi as being composed of two strong cash generators and a question mark plus cash plus a 20% residual stake in Lumentum. On a cash flow and EBITDA basis, VIAV looks reasonably inexpensive. However, we see little growth ahead, and the NE segment, the primary growth vehicle and longer-term story, has recently missed numbers. We think VIAV shares are likely to be stalled in neutral until the company can demonstrate that its investments in the NE Segment can pay off. That may take another year. We initiate coverage at Hold."

For an analyst ratings summary and ratings history on Viavi Solutions click here. For more ratings news on Viavi Solutions click here.

Shares of Viavi Solutions closed at $6.28 yesterday.

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