Bullish Views on Viavi Solutions (VIAV) After Outperforming Consensus Forecasts

Viavi Solutions (NASDAQ:VIAV) is one of the 11 best communication equipment stocks according to hedge funds.

On January 29, the price target on Viavi Solutions (NASDAQ:VIAV) was increased from $22 to $26 by B. Riley analyst Dave Kang. He maintained a Buy rating on the stock after the recent quarterly report that beat consensus estimates.

The analyst also reflected on the company’s recent acquisition of Spirent H-S Testing business, which makes it a leading player within the high-speed Ethernet validation space. This transaction also enables expansion of the company’s total addressable market at a time when the industry is making a shift towards complex and lower-latency architectures.

On January 29, Ryan Koontz from Needham also raised his price target for Viavi Solutions (NASDAQ:VIAV) from $24 to $28, maintaining a Buy rating. Koontz based his rating on the company’s strong quarterly earnings, along with favorable management guidance. He appreciates management’s cost-cutting intent with measures that are expected to generate annual savings worth around $30 million. The analyst expects data centers to grow by almost 20%, while other segments are projected to deliver 3%-5% growth.

Viavi Solutions (NASDAQ: VIAV) is a technology company that offers network testing, monitoring, and assurance solutions, as well as light-management technologies. The company serves various markets, including telecommunications, cloud, first responders, military, aerospace, and critical infrastructures. It delivers 5G, fiber, and 3D sensing solutions through two segments, i.e., Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP).

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Disclosure: None. This article is originally published at Insider Monkey.