MKM Partners Starts Viavi Solutions (VIAV) at Buy

MKM Partners analyst Fahad Najam initiates coverage on Viavi Solutions (NASDAQ: VIAV) with a Buy rating and a price target of $20.00.

The analyst comments "We see upside to VIAV’s FY2Q21 and FY3Q21 operating results and outlook and highlight five catalysts lining up favorably over the next 12-24 months. These include: 1) 5G upgrade cycle, in particular, the recent C-band spectrum deployment by North American carriers; 2) Deeper and broader penetration of fiber optics in telecom service provider networks, driven by both the PostCOVID-19 Work-From-Home trend and the $20bn Rural Digital Opportunity Fund (RDOF); 3) The Biden Administration's plan for universal broadband should drive deeper and broader fiber-optic penetration; 4) The 800+G upgrade cycle in Metro and Long-haul networks driven by Cloud Providers, and 5) Deeper and broader adoption of 3D-sensing solutions by the Android Ecosystem. In short, it is a good time to be VIAV. Even better, these catalysts should continue to provide favorable tailwinds for VIAV, well beyond 24-36 months horizon and enhance VIAV's valuation multiple."

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 $16.00 yesterday.

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