Clearfield stock price target raised to $50 from $45 at Roth/MKM

Investing.com - Roth/MKM raised its price target on Clearfield (NASDAQ:CLFD) to $50.00 from $45.00 on Thursday, while maintaining a Buy rating on the fiber connectivity solutions provider. The company, currently valued at $540 million, has seen its stock surge 27% over the past six months, according to InvestingPro data.

The firm cited Clearfield’s better-than-expected June quarter performance, which was driven by strong seasonal contribution from its Nestor product line. Community Broadband sales increased but at a pace below normal seasonal trends. While the company faces near-term challenges, analysts project a return to profitability with earnings of $0.18 per share in fiscal 2025.

Roth/MKM noted that the timing of Broadband Equity, Access, and Deployment (BEAD) funding, expected in 2026, is influencing the next wave of broadband investment decisions by customers.

Clearfield maintained its previous fiscal year 2025 outlook, which suggests flat September quarter sales before entering a slower winter seasonal period. The research firm has lowered its near-term expectations for the company.

Despite raising the price target, Roth/MKM expects Clearfield stock to pause its upward movement before experiencing a stronger recovery in calendar year 2026. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 8 additional exclusive insights available to subscribers.

In other recent news, Clearfield Inc. announced its financial results for the third quarter of 2025, exceeding earnings expectations. The company reported an earnings per share (EPS) of $0.11, which was notably higher than the anticipated loss of $0.06 per share. Additionally, Clearfield’s revenue reached $49.9 million, surpassing the forecast of $47.88 million. These results indicate a stronger-than-expected performance for the quarter. Despite the positive financial results, the stock remained relatively stable. Analysts had predicted a lower performance, making the earnings surprise noteworthy. The company’s financial achievements were highlighted amidst minimal changes in stock value. Recent developments continue to shape investor perspectives on Clearfield Inc.

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