Calix rises amid JPMorgan upgrade

J.P. Morgan upgraded Calix (CALX) from Neutral to Overweight, setting a revised price target of $90 for December 2026, reflecting optimism based on increased spending from Broadband Service Providers on network enhancements and fiber technology adoption.

Analyst Samik Chatterjee noted that Calix differentiates itself through a focus on service quality, positioning the company to capture market share internationally and among larger U.S. Broadband Service Providers.

Chatterjee anticipates a recovery phase for Calix in 2025 after inventory adjustments in 2024, with projected revenue growth of about 20% in 2026, indicating significant improvement beyond previous low points.

Recommendation Rating: Strong Buy

Calix (CALX) experienced a surge of over 5% in premarket trading on Thursday after J.P. Morgan announced an upgrade for the telecom company. Analyst Samik Chatterjee indicated in a note to clients that Calix’s shares are being upgraded from Neutral to Overweight, with a revised price target of $90 for December 2026, up from the previous target of $75. This adjustment reflects a positive outlook driven by anticipated increased spending among Broadband Service Providers (BSPs) for network enhancements, particularly emphasizing the adoption of fiber technology.

Chatterjee highlighted that Calix distinguishes itself from competitors by prioritizing improved service quality. The company is well-positioned to gain market share on a global scale, extending its influence beyond the Small and Medium BSPs in the United States. Following the rollout of the Calix 3.0 platform, the firm is engaging more effectively with international customers and top-tier U.S. BSPs.

Looking ahead, Chatterjee projects a recovery phase in 2025 after a period of inventory adjustment in 2024. The forecast anticipates approximately 20% revenue growth for Calix in 2026, illustrating an acceleration that goes beyond merely rebounding from past lows.