Clearfield stock rating downgraded to Market Perform by Northland

Published 07/08/2025, 15:02
Clearfield stock rating downgraded to Market Perform by Northland

Investing.com - Northland downgraded Clearfield (NASDAQ:CLFD) from Outperform to Market Perform while maintaining its $45.00 price target following the company’s fiscal third-quarter 2025 results. According to InvestingPro data, the stock has shown strong momentum with a 27% gain over the past six months, though it currently trades near its 52-week high of $46.76.

The research firm cited Clearfield’s "solid, though below seasonal, growth in US rural fiber markets" alongside "continued weakness internationally at Nestor Cables" as key factors behind the rating change.

Northland noted that Nestor Cables revenue is projected to decline nearly 20% in fiscal year 2025 compared to initial expectations of flat performance, with the subsidiary also experiencing meaningful losses.

The firm identified potential tailwinds for Clearfield in fiscal year 2026, including stabilizing revenue and reduced losses at Nestor Cables.

Reduced uncertainty surrounding the Broadband Equity, Access, and Deployment (BEAD) program was also highlighted as a positive factor for the company’s outlook.

In other recent news, Clearfield Inc. reported its financial results for the third quarter of 2025, surpassing earnings expectations. The company achieved an earnings per share (EPS) of $0.11, outperforming the projected loss of $0.06. Additionally, Clearfield reported revenue of $49.9 million, which exceeded the anticipated $47.88 million. This positive financial performance was attributed to a strong seasonal contribution from its Nestor product line. Community Broadband sales increased, although they did not meet typical seasonal trends. Roth/MKM responded to these results by raising Clearfield’s price target from $45 to $50, maintaining a Buy rating. The firm’s decision was influenced by the company’s better-than-expected quarterly performance. These developments reflect Clearfield’s ongoing strategic initiatives and market engagement.

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