Needham Reiterates Buy Rating on Clearfield (CLFD)

Needham analyst Ryan Koontz reiterated a Buy rating and $50.00 price target on Clearfield (NASDAQ: CLFD).

The analyst commented: "We hosted investor meetings with CLFD CEO Cheri Beranek and CFO Dan Herzog on September 17-18. Management's tone was positive and confident for a recovery from customer inventory headwinds that still remain in its Regional and Cable segments. Guidance continues to be viewed as conservative, which we believe leaves ample room for beats, and we think street estimates are sufficiently low.

Importantly, management noted an expected C25 recovery in its core Community Broadband segment, likely returning to DD% growth. Many new projects are commencing design phase in smaller rural telcos funded by new E-ACAM subsidies (an alternative to BEAD with less regulation). NT product mix continues to be skewed toward "connected homes" with a recovery in "passed homes" likely in the next build season in C2Q25."

For an analyst ratings summary and ratings history on Clearfield click here. For more ratings news on Clearfield click here.

Shares of Clearfield closed at $38.76 yesterday.

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