Jefferies Says Buy Calix (CALX) Following Sell Off, Raises Price Target
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Price: $40.12 -0.64%
Rating Summary:
12 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating its Buy rating on shares of Calix (NYSE: CALX) as it believes that the shares will sell off modestly today as investors contemplate another round of very conservative guidance from the company.
The firm believes that investors should use this time to BUY.
Jefferies believes that the company's revenue guidance of $406 million is conservative but its EPS of $0.82 is roughly inline. The firm is raising its 2011 revenue estimate from $345.7 million to $409.5 million and wouldn't be surprised if it reaches in the $430 million range. Its new EPS estimate was raised from $0.65 to $0.85. Jefferies 2012 revenue and EPS estimates are $560.4 million and $1.80.
Jefferies comments that there is still significant improvements to the fundamental Calix story that will play out over the next 12 months. The firm bases these beliefs around; broadband Stimulus, the network upgrade opportunity at Frontier, potential account penetration at Qwest, margin expansion, and an attractive valuation vis-a-vis the peer group.
The firm expects that CALX will announce a new strategy for penetrating select international markets and significantly increase the size of its long term addressable market.
For more ratings news on Calix click here and for the rating history of Calix click here.
Shares of Calix closed at $20.42 yesterday.
The firm believes that investors should use this time to BUY.
Jefferies believes that the company's revenue guidance of $406 million is conservative but its EPS of $0.82 is roughly inline. The firm is raising its 2011 revenue estimate from $345.7 million to $409.5 million and wouldn't be surprised if it reaches in the $430 million range. Its new EPS estimate was raised from $0.65 to $0.85. Jefferies 2012 revenue and EPS estimates are $560.4 million and $1.80.
Jefferies comments that there is still significant improvements to the fundamental Calix story that will play out over the next 12 months. The firm bases these beliefs around; broadband Stimulus, the network upgrade opportunity at Frontier, potential account penetration at Qwest, margin expansion, and an attractive valuation vis-a-vis the peer group.
The firm expects that CALX will announce a new strategy for penetrating select international markets and significantly increase the size of its long term addressable market.
For more ratings news on Calix click here and for the rating history of Calix click here.
Shares of Calix closed at $20.42 yesterday.
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