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Investing.com - Susquehanna upgraded Viavi Solutions (NASDAQ:VIAV), currently valued at $2.5 billion, from Neutral to Positive on Friday, setting a price target of $15.00 as the firm sees potential for annualized earnings per share of $0.80 or higher. According to InvestingPro data, the stock trades at a high earnings multiple but shows relatively low volatility with a beta of 0.87.
The upgrade comes after Viavi’s June quarter (Q4 FY25) results exceeded expectations, with revenue reaching $1.05 billion in the last twelve months and maintaining a robust gross margin of 59.26%. The company delivered earnings per share of $0.13, driven by stronger-than-expected performance in the OSP segment.
Viavi’s September quarter guidance also surpassed consensus on both top and bottom lines, with better-than-seasonal results expected in the NSE segment, while the OSP segment benefits from a seasonal uptick in 3D sensing technology.
Susquehanna raised its FY26 and FY27 EPS estimates to $0.60 and $0.65 respectively, citing increased fiber adoption for AI applications as a key growth driver, with additional upside potential from changes in smartphone form factors and the pending Spirent (LON:SPT) acquisition.
The firm noted that Viavi continues to see encouraging near-term booking trends from service providers, operators (5G+), network equipment manufacturers, and semiconductor customers, with strong demand for data center fiber products offsetting current weakness in wireless.
In other recent news, Viavi Solutions reported impressive fourth-quarter earnings for fiscal year 2025, surpassing analyst expectations. The company announced revenues of $290.5 million, which was higher than the projected $285.18 million, marking a 15% increase year-over-year. Earnings per share were reported at $0.13, exceeding forecasts of $0.12. Following these strong results, Rosenblatt Securities raised its price target for Viavi Solutions from $13.50 to $15.00, maintaining a Buy rating. The firm’s analysis was influenced by the company’s robust quarterly performance and promising guidance, particularly in the AI data center sector. Viavi’s financial performance highlights its ability to exceed both revenue and earnings projections. These developments reflect the company’s ongoing growth and potential in the optical testing equipment market.
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