Stifel raises Viavi Solutions stock price target to $15 on diversification

Published 13/10/2025, 10:50
Stifel raises Viavi Solutions stock price target to $15 on diversification

Investing.com - Stifel has raised its price target on Viavi Solutions (NASDAQ:VIAV) to $15.00 from $13.00 while maintaining a Buy rating on the stock. The company, currently trading at $12.27 with a market capitalization of $2.7 billion, has shown strong momentum with a 33% return over the past year.

The investment firm’s decision follows a three-day non-deal roadshow in Europe with Viavi’s management team, including CEO Oleg Khaykin, CFO Ilan Daskal, and Director of Investor Relations Vibhuti Nayar.

Stifel highlighted Viavi’s ongoing efforts to diversify its revenue streams away from traditional telecom and cable service providers toward data center ecosystem markets and the aerospace and defense sector.

The recent acquisition of Inertial Labs has exceeded management’s initial expectations, according to Stifel, while Viavi’s pending acquisition of Spirent’s high-speed Ethernet and network security business is expected to close soon.

These strategic moves will shift Viavi’s revenue mix toward majority non-service provider business for the first time since the company spun out from JDS-Uniphase ten years ago, positioning it in faster design cycles and more profitable segments.

In other recent news, Viavi Solutions Inc. announced the expansion of its ONE LabPro testing platform with the new ONE-1600ER module, which supports next-generation 1.6Tb optical components. This enhancement includes full Ethernet support and comprehensive performance testing capabilities. Additionally, Viavi has partnered with CrowdStrike to integrate its Observer network observability platform with CrowdStrike Falcon Next-Gen SIEM, aiming to enhance visibility across security and IT operations. In financial developments, Viavi issued $250 million in 0.625% Senior Convertible Notes due 2031, with a portion exchanged for existing notes and the remainder sold for cash to institutional investors. Furthermore, Susquehanna upgraded Viavi Solutions’ stock from Neutral to Positive, citing strong demand for AI fiber and a positive outlook on earnings per share. The upgrade follows Viavi’s better-than-expected June quarter results, where revenue and gross margin exceeded consensus estimates. These recent developments highlight Viavi’s strategic growth and financial maneuvering.

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