Calix stock price target raised to $65 from $56 at Rosenblatt on strong results

Investing.com - Rosenblatt raised its price target on Calix (NYSE:CALX) to $65.00 from $56.00 on Tuesday, while maintaining a Buy rating following the company’s second-quarter results. The stock, which has delivered an impressive 54% return year-to-date, currently trades near its 52-week high of $54.36. According to InvestingPro analysis, the company maintains a strong financial position with more cash than debt on its balance sheet.

Calix reported second-quarter revenues of $242 million, representing a 22% year-over-year increase and 10% sequential growth, exceeding consensus estimates by $18 million or 8%. The company posted gross margins of 56.8% and operating margins of 10.8%, surpassing expectations by 60 basis points and 380 basis points respectively. InvestingPro data reveals the company maintains excellent liquidity with a current ratio of 4.58, while its overall financial health score is rated as "GOOD". Discover 10+ additional exclusive insights available with InvestingPro’s comprehensive analysis.

Earnings per share reached $0.33, 50% higher than analyst models had projected. Additional financial highlights included remaining performance obligations up 30% year-over-year, days sales outstanding dropping to 24 days, and record quarterly operating cash flow of $39.4 million. With a market capitalization of $3.48 billion, Calix demonstrates strong momentum, having generated positive free cash flow despite current profitability challenges.

Calix’s third-quarter guidance for revenue, margins, and earnings also exceeded consensus estimates by a magnitude similar to the second-quarter outperformance. Rosenblatt noted that Calix’s Broadband Experience Provider customers are gaining subscriber market share, expanding average revenue per user with new cloud and software-based services, and reducing churn "to practically zero."

Rosenblatt increased its earnings per share estimates for Calix to $1.21 for 2025 and $1.62 for 2026, up from previous projections of $0.88 and $1.30 respectively, with the new price target based on 40 times 2026 earnings per share.

In other recent news, Calix, Inc. reported impressive financial results for the second quarter of 2025, exceeding analyst expectations. The company announced adjusted earnings of $0.33 per share, which was significantly higher than the analyst consensus of $0.21 per share. Revenue for the quarter reached $241.9 million, surpassing the estimated $223.77 million and marking a 22% increase from the same period last year. Additionally, Calix provided strong guidance for the upcoming quarter, further boosting investor confidence. These developments have drawn attention from various analyst firms, although specific upgrades or downgrades were not mentioned. The company’s robust performance highlights its strong position in the market. Investors are closely monitoring these updates as they evaluate their investment strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.