Viavi Solutions (NASDAQ:VIAV) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Viavi Solutions to “strong buy” from “hold.” Overall analyst sentiment is “Moderate Buy,” with an average price target of $49.88 versus the reported share price of $43.54.
• Viavi exceeded quarterly expectations, reporting $0.34 in EPS versus the $0.30 consensus and $443.1 million in revenue, up 52.5% year over year. The company issued first-quarter 2027 EPS guidance of $0.40–$0.42.
• Despite improving results and demand tied to AI infrastructure and network testing, analysts remain divided, with price targets ranging from $44 to $70. Investors should weigh valuation, wireless-demand weakness and the sustainability of margin expansion.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Thursday,Zacks.com reports.

VIAV has been the topic of several other reports. Needham & Company LLC lowered their target price on shares of Viavi Solutions from $68.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Susquehanna increased their target price on Viavi Solutions from $65.00 to $66.00 and gave the company a "positive" rating in a report on Wednesday, July 1st. UBS Group lowered their price target on shares of Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Stifel Nicolaus raised their target price on Viavi Solutions from $60.00 to $65.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $70.00 price objective on shares of Viavi Solutions in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $49.88.

Viavi Solutions Price Performance

Shares of VIAV opened at $43.54 on Thursday. The company has a 50 day moving average of $43.23 and a two-hundred day moving average of $39.74. The company has a quick ratio of 1.62, a current ratio of 1.85 and a debt-to-equity ratio of 0.27. Viavi Solutions has a twelve month low of $10.44 and a twelve month high of $60.43. The company has a market cap of $10.18 billion, a price-to-earnings ratio of -290.25 and a beta of 1.21.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.30 by $0.04. Viavi Solutions had a positive return on equity of 19.60% and a negative net margin of 2.00%.The company had revenue of $443.10 million during the quarter, compared to analysts' expectations of $432.62 million. During the same period last year, the business posted $0.13 earnings per share. The firm's revenue was up 52.5% compared to the same quarter last year. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. As a group, analysts predict that Viavi Solutions will post 1.32 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Viavi Solutions news, EVP Paul Mcnab sold 1,595 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $37.37, for a total transaction of $59,605.15. Following the sale, the executive vice president owned 13,876 shares of the company's stock, valued at approximately $518,546.12. This trade represents a 10.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Viavi Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Silvant Capital Management LLC acquired a new stake in shares of Viavi Solutions during the second quarter worth about $33,000. WPG Advisers LLC increased its position in Viavi Solutions by 96.2% during the first quarter. WPG Advisers LLC now owns 775 shares of the communications equipment provider's stock worth $26,000 after buying an additional 380 shares during the period. Persistent Asset Partners Ltd purchased a new stake in Viavi Solutions in the second quarter valued at approximately $38,000. Carolina Wealth Advisors LLC grew its position in shares of Viavi Solutions by 83.2% during the second quarter. Carolina Wealth Advisors LLC now owns 852 shares of the communications equipment provider's stock worth $41,000 after acquiring an additional 387 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Viavi Solutions in the 2nd quarter valued at $57,000. 95.54% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Viavi Solutions

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

• Positive Sentiment: Analyst estimates raised materially: Northland Securities increased its FY2027 EPS forecast to $1.45 from $1.07, while raising estimates for Q1, Q2, Q3 and Q4 2027. The revised quarterly forecasts range from $0.34 to $0.38 per share, signaling expectations for improving profitability. Northland Securities earnings estimates
• Positive Sentiment: AI infrastructure tailwinds: Viavi is benefiting from data-center expansion and demand for network testing, while new testing capabilities and margin expansion are supporting faster growth. Viavi Solutions Gains From AI Infrastructure Demand as Margins Expand
• Positive Sentiment: Product launch expands addressable opportunities: Viavi introduced the Vertex 6.0 channel emulator for 6G and Wi-Fi 7/8 testing, strengthening its positioning in next-generation wireless development and validation. VIAVI Introduces Vertex 6.0 Channel Emulator
• Positive Sentiment: Price-target optimism: The average Wall Street price target implies 38.8% potential upside. However, the article notes that price targets are an imperfect indicator; improving earnings-estimate revisions provide the more meaningful bullish signal. Viavi Solutions Analyst Price Target Potential
• Neutral Sentiment: Key question is margin durability: Recent commentary focuses on whether Viavi can sustain its improving margin profile as growth accelerates, making future earnings quality an important catalyst. Viavi Solutions Q4 Margin Review
• Negative Sentiment: Valuation and execution risks remain: Viavi’s premium valuation and weak quantitative signals could limit additional upside. A recent pullback also reflects concerns about weak wireless demand and potential dilution despite strong revenue, earnings and margin trends. Viavi Solutions Premium Valuation Analysis

About Viavi Solutions

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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