Calix price target raised to $52 from $40 at Jefferies
Jefferies analyst George Notter raised the firm's price target on Calix (CALX) to $52 from $40 and keeps a Buy rating on the shares. The analyst is "very excited" about the rural broadband investment theme. New Federal money coming into the market will drive "sizable, long-lasting growth" for the equipment vendors, Notter tells investors in a research note. Based on programs already passed into law, stimulus will grow two-times versus existing levels, according to the analyst. Adding in pending legislation, subsidies could grow up to four-times versus current levels, he says. Notter's favorite rural broadband plays are Calix, Adtran (ADTN) and Cambium (CMBM).