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Needham analyst Ryan Koontz reiterated a Buy rating on Calix, IncCALX with a $70 price target.
CALX reported a strong beat and raise, with 3Q22 revenue and non-GAAP EPS beating the consensus forecasts and 4Q22 revenue guidance +10% ahead, driven by accelerating U.S. spending on fiber access.
He suspected that the mid-sized customer segment grew over 100% sequentially due to new customer Brightspeed coming online, while Cloud-centric RPO reached $173 million (+63% Y/Y).
He waited to hear management’s commentary and discussion of results on this morning’s conference call before he adjusted his 4Q22 and CY23 estimates.
He was highly bullish on CALX and considered it one of the top two picks in his coverage. He pointed out strong execution and a sizable competitive lead in its transformation to a software company.
He foresaw the upside to his estimates driven by a massive U.S. rural fiber build, partially funded by many federal subsidy programs.
Price Action: CALX shares traded higher by 16.6% at $70.33 on the last check Tuesday.
