Viavi Solutions (VIAV): Service Provider Market Remains A Problem - Needham

Needham & Company analyst, Alex Henderson, reiterated his Hold rating on Viavi Solutions (NASDAQ: VIAV) and believes the company has made it pretty clear that the Service Provider spending looks soft, and the recent M&A activity in the space is making this weakness likely persistent into CY1H17.

This is not a Viavi-specific problem but a broad one for all Service Provider oriented companies. That said, Viavi is heavily skewed to these Service Providers.

Investors in VIAV are likely to see some share price stability from $115MM left on the $150MM buyback. Viavi has 3.4MM shares of LITE left, down from 12MM at the spin. On OSP, Viavi lowered expectations for the next several quarters as programs have stretched. Longer term, the OSP outlook remains healthy.

The analyst does not have a published price target on shares of VIAV.

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 $7.30 yesterday.

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