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Investing.com - Needham has raised its price target on Calix (NYSE:CALX) to $70.00 from $60.00 while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $55.42, with the stock already showing impressive YTD returns of 54%.
The research firm cited Calix’s second-quarter 2025 results and third-quarter 2025 guidance, both of which exceeded consensus expectations. Needham highlighted the continued strength in second-quarter remaining performance obligations (RPO), which grew 30% year-over-year. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 4.55 and more cash than debt on its balance sheet.
Needham expressed optimism about Calix’s prospects for the second half of 2025, suggesting that even its increased estimates could prove conservative. The firm noted that potential benefits from the Broadband Equity, Access, and Deployment (BEAD) program represent additional upside not currently factored into its 2026 estimates.
The research firm believes Calix is successfully converting former DZS customers and is "uniquely positioned" to benefit from rural fiber deployment initiatives. Needham also pointed to reduced competitive concerns and operators’ renewed focus on fiber deployments as positive factors.
Calix’s software business was highlighted as having "reached critical mass," contributing to Needham’s decision to raise both its fiscal 2025/2026 estimates and price target for the stock.
In other recent news, Calix Inc . reported strong financial results for the second quarter of 2025, surpassing analyst expectations significantly. The company achieved an earnings per share (EPS) of $0.33, outperforming the forecasted $0.21, which represents a 57.14% surprise. Revenue for the quarter reached $241.9 million, exceeding the anticipated $223.77 million. These results underscore a positive financial performance for the quarter. Additionally, analysts noted the company’s strong earnings and revenue figures, contributing to a favorable outlook. The financial outcomes reflect well on Calix’s operational strategies and market positioning. Investors are likely to take note of these developments as they assess the company’s future potential.
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