Rosenblatt has reduced its price target on Calix Inc. to $70.00 from $85.00 but left its Buy rating intact, following the company's recently released fourth-quarter 2025 results and subsequent guidance. The move comes amid market turbulence for the stock; Calix shares fell 13.9% over the prior week and were trading at $46.66 at the time of the report.
The firm noted that Calix's fourth-quarter results were broadly in line with expectations, while first-quarter guidance contained a mix of signals relative to consensus projections. Data from InvestingPro cited in the company release indicates Calix is slightly undervalued on a Fair Value basis, and the analyst consensus remains a Buy, with price targets across the sell-side ranging from $75 to $90.
Rosenblatt observed that the deceleration in sequential revenue growth forecast for the first quarter aligns with seasonal trends in new fiber deployments, which typically slow during winter months. Calix reached an annual revenue milestone of more than $1 billion, having grown revenue 20.26% over the trailing twelve months. The stock currently trades at a high price-to-earnings ratio of 203.69.
Management flagged rising memory costs as a near-term headwind. Because these costs will affect shipments after the first quarter, the company indicated it will likely implement a temporary price adjustment to pass those expenses on to customers. Financially, Calix is positioned with more cash than debt on its balance sheet and reported a current ratio of 4.24, which the company says provides flexibility in managing the cost pressure.
Rosenblatt also highlighted Calix's new argentic workforce cloud platform, describing it as having "very strong potential" to alter customer operations and create shared financial benefits with Calix. Despite lowering the price target, Rosenblatt stated its estimates for the company remain "largely unchanged." Analysts captured by InvestingPro forecast earnings per share of $1.83 for fiscal year 2026, and InvestingPro provides additional research coverage for Calix among its universe of top U.S. equities.
Separately, Calix reported record fourth-quarter 2025 revenue of $272 million, representing a 32% year-over-year increase, and met earnings per share expectations with $0.39. Annual revenue exceeded $1 billion for the first time, reflecting 20% growth over 2024. Despite these headline figures, the market reacted negatively, with the stock falling in pre-market trading. The company did not tie that decline to a single factor in its disclosure; observers noted it could reflect broader concerns or unmet expectations in other areas.
With Rosenblatt retaining a Buy rating but lowering its price target, investors and sector watchers are left weighing robust top-line momentum and new product potential against near-term margin pressure from component cost inflation. Calix's liquidity metrics provide some cushion, while the planned temporary price adjustment indicates management intends to protect margins by transferring a portion of the increased costs to customers.