
Calix (CALX) Stock Forecast & Price Target
Calix (CALX) Analyst Ratings
Bulls say
Calix Inc. has demonstrated strong financial performance, with large customer revenue, primarily from Verizon and T-Mobile, growing an impressive 243% year-over-year and 19% quarter-over-quarter, driven by heightened demand for their Access Edge platform and network expansion. The company's total Remaining Performance Obligations (RPO) rose 20% year-over-year to $355 million, indicating a continued commitment to its software offerings through long-term customer contracts, further supported by a 5% annual increase in the number of customers utilizing its Experience and Access Edge platforms. Additionally, cash and marketable securities increased by $41 million from the previous quarter to $340 million, positioning Calix for potential revenue growth in the range of 10% to 15% annually by 2026, bolstered by positive developments in state BEAD approvals expected to influence spending starting in 2026.
Bears say
Calix Inc. has demonstrated a reduced cash conversion cycle, decreasing from 127 days year-over-year to 108 days in the latest quarter; however, cash flow from operations and net free cash flow both reflected declines on a quarter-over-quarter basis, indicating potential liquidity challenges. The company faces significant gross margin headwinds anticipated in the upcoming quarter due to increased cloud costs, coupled with concerns over a macroeconomic slowdown deterring household broadband spending, which may impact new subscriber acquisitions. Furthermore, the reliance on medium-sized customer revenue, which has exhibited quarterly volatility, alongside potential labor supply constraints and demand risks stemming from adjusted inventory practices among broadband service providers, contribute to a pessimistic outlook for future growth opportunities.
This aggregate rating is based on analysts' research of Calix and is not a guaranteed prediction by Public.com or investment advice.
Calix (CALX) Analyst Forecast & Price Prediction
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