Rosenblatt Upgrades Viavi Solutions (VIAV) to Buy

Rosenblatt analyst Mike Genovese upgraded Viavi Solutions (NASDAQ: VIAV) from Neutral to Buy with a price target of $14.00.

The analyst comments "We are upgrading Viavi to Buy, from Neutral, as the improvements in the company's Network Enablement (NE) instruments business seen in the December quarter where segment sales increased 15% Y/Y and 26% Q/Q, look real and sustainable over several more quarters. NE, and total company revenues, were guided up in 3Q25, which is better than normal seasonallity. Viavi is benefiting from better Telco and Cable spending on Field Test products for Fiber Access, Optical, and 5G, particularly in North America but also in Europe. The OEMs that make Fiber, Optical and 5G equipment are also spending more on Lab Test products. Viavi has Lab Test exposure to 400G, 800G, and 1.6T Datacom Optical transceivers. We believe this business is now ~10% of NE sales and growing faster than segment average. Similarly, NE is benefiting from good Aerospace and Military demand, and Military/Aerospace is also ~10% of NE revenues and growing faster than segment average. Equity markets have pulled back, allowing us this opportunity to upgrade VIAV. In a separate note, we cut our Ciena (CIEN, Neutral) price target to reflect AI multiples that have contracted. Our VIAV upgrade is about using market weakness to highlight fundamental Telecom market recovery and strength that has not yet been recognized and priced in. We are reiterating our Buy ratings on Adtran (ADTN, Buy) and Ribbon (RBBN, Buy) for the same reason."

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 $10.81 yesterday.

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