Calix Up 12% After Craig-Hallum Upgrade

Investing.com

Published Jan 28, 2022 03:01PM ET

Calix Up 12% After Craig-Hallum Upgrade

By Sam Boughedda

Investing.com — Shares of Calix Inc (NYSE:CALX), the cloud and software services provider, rose 12% Friday after analyst Christian Schwab at Craig-Hallum upgraded them to buy from hold with a price target of $55.

The firm upgraded the stock after the company reported its fourth quarter results on Wednesday, with revenue and earnings coming in above consensus estimates. 

Schwab referenced the recent slide in Calix shares, believing it provides a good entry opportunity.

"With shares down ~50% in the last month, we are upgrading CALX to a Buy rating and maintaining our $55 price target. Our price target is based on 5.0x EV/S on our FY22 revenue estimate of $740 million," he said. 

"We are encouraged by the fact the company's All Platforms products continue to ramp with Platform's revenue crossing over 50% vs. legacy product revenue for the first time in Q4. Finally, we look forward to the company's Analyst Day scheduled for February 23rd where we expect management to provide an updated longer-term outlook for the business."

On Thursday, Cowen analyst Paul Silverstein said he continues to see an "outstanding" long-term outlook in the company and continues to see it as his best small/mid-cap idea.

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