Calix: Goldman, UBS Launch Coverage With Buy Ratings

Calix (CALX) shares are trading higher this morning after the newly public telecom equipment company picked up Buy recommendations from analysts at a couple of the firms that managed its March IPO.

The company went public at $13, in an offering managed by UBS, Goldmam Sachs, Morgan Stanley and UBS.

• UBS analyst Nikos Theodosopoulos launched coverage with a Buy rating and $14.50 price target. He writes that the company is “an intently focused well positioned broadband access pure play with a track record of share gains.”
• Goldman Sachs analyst Simona Jankowski launched coverage with a Buy rating and $16 price target. “We expect Calix to outperform due to both upside estimate revisions and multiple expansion,” she writes. “We see Calix as positioned at the right time and right place to benefit from the secular copper to fiber transition over the next decade, as a result of its pure-play exposure to next-gen access equipment that enables this transition.”

Jankowski, meanwhile, also launched coverage of Adtran (ADTN) and Tellabs (TLAB), both with Neutral ratings.

• On Adtran, Jankowski writes that she is “positive on Adtran’s fundamentals given improving market growth and share gains, but see those as already reflect in Street estimate and the multiple.”
• On Tellabs, she writes that she sees “improving fundamentals from the secular growth in mobile backhaul and the optical cycle,” but adds that margins are “close to peak,” and valuation already reflects the earnings potential.

This morning:

• CALX is up 14 cents, or 1.2%, to $12.14.
• ADTN is up 18 cents, or 0.7%, to $26.95.
• TLAB is up 17 cents, or 1.9%, to $9.26.