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© Reuters. Viavi Options (VIAV) surges 15% following Stifel improve
Shares of Viavi Options (NASDAQ:) surged greater than 15% Monday after analysts at Stifel upgraded the inventory to Purchase from Maintain, elevating the value goal to $13 from $15 per share.
Analysts, who headed the notice, stated the corporate is “broadening the broadening of AI theme.”
“While the company is coming off of a challenging C2023, in which top-line revenue declined 19% y/y and non-GAAP EPS contracted 55%, we think the worst is behind,” wrote the analysts.
As well as, the agency expects a modest income restoration in C2024 for the corporate, with earnings “likely to accelerate at a significantly faster rate” as income normalizes.
“In 2023, VIAV shares declined 4%, significantly underperforming the broader technology peer group. Irrelevant within the broader AI backdrop,” the analysts added.
Stifel believes quite a lot of the corporate’s unhealthy information is already priced in, and looking out forward, they consider that VIAV will play a task of their “broadening of AI” theme as the usage of high-speed interconnect applied sciences accelerates and testing necessities grow to be more and more complicated.