UBS Group Has Lowered Expectations for Viavi Solutions (NASDAQ:VIAV) Stock Price

Key Points

• UBS Group cut Viavi Solutions’ price target from $60 to $44 and maintained a Neutral rating, implying about 8.9% upside from the prior close.
• Viavi reported quarterly results above expectations, with EPS of $0.34 versus the $0.30 consensus and revenue up 52.5% year over year to $443.1 million. Management also issued stronger-than-expected fiscal Q1 2027 guidance.
• Analyst sentiment remains broadly positive, with a Moderate Buy consensus and a $49.88 average target, but insider selling and valuation concerns could increase volatility.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) had its target price reduced by stock analysts at UBS Group from $60.00 to $44.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the communications equipment provider's stock. UBS Group's price objective would indicate a potential upside of 8.91% from the company's previous close.

Several other equities research analysts have also commented on the company. Susquehanna upped their price objective on Viavi Solutions from $65.00 to $66.00 and gave the stock a "positive" rating in a research report on Wednesday, July 1st. Stifel Nicolaus lifted their target price on shares of Viavi Solutions from $60.00 to $65.00 and gave the company a "buy" rating in a report on Thursday. Wall Street Zen upgraded shares of Viavi Solutions from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Weiss Ratings downgraded shares of Viavi Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, July 16th. Finally, B. Riley Financial dropped their price target on shares of Viavi Solutions from $63.00 to $60.00 and set a "buy" rating on the stock in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $49.88.

Viavi Solutions Stock Performance

Shares of NASDAQ VIAV traded up $1.50 during trading on Thursday, reaching $40.40. 4,819,378 shares of the company traded hands, compared to its average volume of 6,340,062. The stock has a market cap of $9.45 billion, a P/E ratio of -168.03 and a beta of 1.21. The firm's fifty day simple moving average is $44.54 and its 200 day simple moving average is $38.81. The company has a current ratio of 1.61, a quick ratio of 1.39 and a debt-to-equity ratio of 0.99. Viavi Solutions has a 12-month low of $10.02 and a 12-month high of $60.43.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last issued its earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.04. The firm had revenue of $443.10 million for the quarter, compared to the consensus estimate of $432.62 million. Viavi Solutions had a positive return on equity of 16.80% and a negative net margin of 4.03%.The company's revenue was up 52.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.13 earnings per share. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. As a group, research analysts anticipate that Viavi Solutions will post 0.73 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Viavi Solutions news, CEO Oleg Khaykin sold 136,547 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $51.82, for a total transaction of $7,075,865.54. Following the transaction, the chief executive officer owned 1,188,798 shares in the company, valued at approximately $61,603,512.36. This represents a 10.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.80% of the company's stock.

Institutional Trading of Viavi Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in VIAV. Royal Bank of Canada grew its stake in Viavi Solutions by 11.5% in the 1st quarter. Royal Bank of Canada now owns 183,320 shares of the communications equipment provider's stock valued at $2,051,000 after acquiring an additional 18,910 shares during the period. AQR Capital Management LLC raised its position in Viavi Solutions by 110.5% during the first quarter. AQR Capital Management LLC now owns 33,663 shares of the communications equipment provider's stock worth $377,000 after acquiring an additional 17,673 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Viavi Solutions by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 131,061 shares of the communications equipment provider's stock valued at $1,467,000 after purchasing an additional 5,775 shares in the last quarter. Millennium Management LLC lifted its holdings in Viavi Solutions by 205.4% during the first quarter. Millennium Management LLC now owns 476,767 shares of the communications equipment provider's stock valued at $5,335,000 after purchasing an additional 320,662 shares in the last quarter. Finally, United Services Automobile Association acquired a new stake in shares of Viavi Solutions in the first quarter valued at about $165,000. 95.54% of the stock is currently owned by hedge funds and other institutional investors.

Key Viavi Solutions News

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: Fiscal Q4 results exceeded expectations. Viavi reported adjusted earnings of $0.34 per share, above the $0.30 consensus estimate, while revenue rose 52.5% year over year to $443.1 million, surpassing expectations of approximately $432.6 million. Growth was supported by data-center, aerospace and defense demand and contributions from Spirent products. VIAV Q4 Earnings Top Estimates on Data Center, A&D Strength
• Positive Sentiment: Management delivered an upbeat outlook. First-quarter fiscal 2027 guidance calls for EPS of $0.40 to $0.42 and revenue of $450 million to $460 million, well above consensus estimates of $0.27 EPS and $433.2 million revenue. The company is also targeting a $500 million quarterly revenue run rate in calendar 2027. Viavi anticipates Q1 FY2027 EPS of $0.40-$0.42
• Positive Sentiment: Analyst sentiment remains bullish. Stifel Nicolaus raised its price target to $65 and maintained a Buy rating, while Rosenblatt reaffirmed its Buy rating with a $70 target. These targets imply substantial potential upside and suggest analysts view the earnings momentum and guidance as sustainable.
• Neutral Sentiment: Some analysts trimmed targets despite retaining Buy ratings. Needham lowered its target from $68 to $60, and B. Riley reduced its target from $63 to $60. The cuts may reflect valuation or risk management rather than a change in the broader bullish view. Needham lowers VIAV price target
• Negative Sentiment: Valuation and insider selling remain risks. Commentary has raised valuation concerns following the rally, while reported insider activity shows 26 sales and no purchases over the past six months, including substantial selling by executives. These factors could limit further gains or increase volatility even as operating results improve. Viavi Solutions following earnings beat and guidance

Viavi Solutions Company Profile

Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi's product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.

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