Jefferies analyst George Notter downgraded Calix to Hold from Buy with a price target of $30, down from $48. The analyst believes the Broadband Equity, Access, and Deployment program will be a major focal point for investors and will continue to push on timing. In addition, there is uncertainty about the timing of Calix's two larger customers improving, and the company is sustaining aggressive investments in the business, the analyst tells investors in a research note. The firm modestly lowered its software estimates and finds it hard to justify a premium valuation for the shares with stock comp making up a sizable portion of its net income.

Craig-Hallum analyst Christian Schwab lowered the firm's price target on Calix to $41 from $48 and keeps a Buy rating on the shares. The firm notes Calix lowered its forward expectations for the second quarter in a row, blaming large customer spending patterns. Combined, the company's medium and large customers went from driving $77M in revenue in Q4 2023, to $43M in Q1, and are expected to be down roughly 50% sequentially in Q2 to near $20M, Craig-Hallum adds. Management believes Q2 will be the bottom for the company's topline results, with its medium and large customers now at a level that can eventually return to growth.