JPMorgan Chase & Co. Has Lowered Expectations for Calix (NYSE:CALX) Stock Price

Key Points

• JPMorgan cut its price target on Calix to $70 (from $90) but kept an "overweight" rating, implying roughly a 41% upside from the current share price.
• Calix reported a quarter with revenue of $272.4M (up 32.2% YoY) and $0.39 EPS (beating estimates) and its board authorized a $125M share repurchase program (about 3.4% of shares outstanding); Q1 EPS guidance was set at $0.340–0.400.
• Analysts' consensus is a "Moderate Buy" with an average price target of $71.67; the stock trades around $49.63, has a ~$3.21B market cap and a high P/E (~199), and is ~98% institutionally owned.

Calix (NYSE:CALX - Get Free Report) had its price target reduced by equities research analysts at JPMorgan Chase & Co. from $90.00 to $70.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the communications equipment provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 41.06% from the stock's current price.

Several other analysts also recently issued reports on the company. Wall Street Zen raised Calix from a "buy" rating to a "strong-buy" rating in a report on Monday, April 6th. Needham & Company LLC lowered their target price on Calix from $82.00 to $70.00 and set a "buy" rating on the stock in a research report on Thursday, January 29th. Rosenblatt Securities restated a "buy" rating and issued a $70.00 target price on shares of Calix in a research report on Tuesday, March 31st. Weiss Ratings upgraded Calix from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Monday, February 23rd. Finally, Craig Hallum set a $60.00 target price on Calix in a research report on Friday, January 30th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Calix has an average rating of "Moderate Buy" and a consensus price target of $71.67.

Calix Stock Performance

Shares of Calix stock traded up $0.51 during trading hours on Thursday, reaching $49.63. The company's stock had a trading volume of 232,329 shares, compared to its average volume of 1,047,850. The company's 50 day simple moving average is $51.23 and its 200 day simple moving average is $54.95. Calix has a one year low of $32.55 and a one year high of $71.22. The stock has a market cap of $3.21 billion, a P/E ratio of 198.60 and a beta of 1.53.

Calix (NYSE:CALX - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The communications equipment provider reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.01. Calix had a net margin of 1.79% and a return on equity of 2.31%. The company had revenue of $272.40 million for the quarter, compared to the consensus estimate of $267.36 million. During the same period last year, the firm posted $0.08 EPS. The company's revenue for the quarter was up 32.2% on a year-over-year basis. Calix has set its Q1 2026 guidance at 0.340-0.400 EPS. On average, sell-side analysts predict that Calix will post -0.43 earnings per share for the current fiscal year.

Calix declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 28th that permits the company to buyback $125.00 million in outstanding shares. This buyback authorization permits the communications equipment provider to purchase up to 3.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Calix

Several hedge funds have recently modified their holdings of CALX. Royal Bank of Canada increased its position in shares of Calix by 11.0% during the 1st quarter. Royal Bank of Canada now owns 28,022 shares of the communications equipment provider's stock valued at $993,000 after purchasing an additional 2,773 shares during the period. AQR Capital Management LLC increased its position in shares of Calix by 304.1% during the 1st quarter. AQR Capital Management LLC now owns 44,874 shares of the communications equipment provider's stock valued at $1,538,000 after purchasing an additional 33,769 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Calix by 10.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 176,328 shares of the communications equipment provider's stock valued at $6,249,000 after purchasing an additional 16,905 shares during the period. Intech Investment Management LLC increased its position in shares of Calix by 26.8% during the 1st quarter. Intech Investment Management LLC now owns 32,923 shares of the communications equipment provider's stock valued at $1,167,000 after purchasing an additional 6,962 shares during the period. Finally, Amundi increased its position in shares of Calix by 16,478.0% during the 2nd quarter. Amundi now owns 9,781 shares of the communications equipment provider's stock valued at $518,000 after purchasing an additional 9,722 shares during the period. 98.14% of the stock is currently owned by institutional investors and hedge funds.

About Calix

Calix, Inc is a provider of cloud and software platforms, systems, and services that enable broadband service providers to transform their networks and subscriber experiences. The company's flagship Calix Cloud platform delivers real-time analytics, automation and intelligence designed to simplify network operations, improve service agility and drive revenue growth. Calix also offers a comprehensive suite of premises and access systems, including broadband access nodes, fiber-to-the-home optics and residential gateways under the GigaSpire brand.

Through its software-defined network architecture, Calix helps service providers virtualize key network functions and introduce new services with minimal capital expenditure.

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