Sam Boughedda

Investing.com — Shares of Calix Inc (NYSE:)Friday’s rise in., cloud- and software-service provider, was 12% after Craig-Hallum analyst Christian Schwab upgraded them to Buy from Hold with a target price of $55.

After the firm reported fourth quarter results, Wednesday’s company report showed that earnings and revenue were higher than consensus estimates. 

Schwab referred to the slide in Calix shares and believed it offers a great entry opportunity.

We are maintaining our $55 price target and upgrading CALX from a Sell rating, despite shares falling by 50% over the past month. “Our price target is based at 5.0x EV/S based on our FY22 revenues estimate of $740 millions,” he stated. 

We are pleased to see that the All Platforms products of the company continue to grow with Platform’s revenues crossing over half the legacy product revenue. This is the first Q4 in which Platform’s revenue has exceeded 50%. The company’s Analyst Day, scheduled for February 23rd, is something we are looking forward to. We expect the management to give an updated outlook on the long-term business.

Paul Silverstein, Cowen Analyst, stated that he still sees an “outstanding”, long-term outlook for the company. He also continues to consider it his top small/mid-cap investment idea.