UPDATE: Needham & Company Starts Calix (CALX) at Buy

(updating comment)

Needham & Company analyst Richard Valera initiates coverage on Calix (NYSE: CALX) with a Buy rating and a price target of $25.00.

The analyst comments "COVID-19 has accelerated the demand for robust consumer broadband service. As a provider of broadband access solutions, we expect Calix to benefit from this demand. The company's software-centric platform enables its communication service provider (CSP) customers to deploy the most efficient access networks, while also providing them with the software and analytics needed to create a better customer experience and generate new revenue streams. Benefiting from growing secular broadband demand, a model transitioning towards software, and the imminent start of a $20B, 10-year broadband subsidy program (RDOF), we look for CALX to show sustained growth and margin expansion over the next several years. We initiate with a Buy rating and a $25 PT, equivalent to ~25x our C'22 EPS estimate."

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

Shares of Calix closed at $19.50 yesterday.

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