Clearfield Analyst Runs Out Of Superlatives Post Upbeat Q4 Results

Needham analyst Ryan Koontz maintained Clearfield, Inc CLFD with a Buy and raised the price target from $115 to $135. Koontz ran out of superlatives.
CLFD delivered another robust quarter, with revenue and EPS ahead of consensus.
Revenue grew +110% Y/Y, and he raised his F23 revenue and EPS estimates.
Community broadband sales remained hot (+91% Y/Y), and cable sales soared by +200% Y/Y.
The backlog remained strong and the operating margin impressed at 23.4%.
Results thwarted negative investor telecom sentiment he attributes predominantly to AT&T Inc T capex cuts.
Koontz updated F23 revenue and EPS estimates were nearly double his December 13 initiation.
With over $90 billion in U.S. rural broadband subsidies just beginning to trickle in ahead of a multi-year cycle and CLFD developing plans to enter Europe, he reiterated CLFD as his top pick.
Northland Capital Markets analyst Tim Savageaux maintained an Outperform and raised the price target from $110 to $120.
Price Action: CLFD shares traded higher by 26.9% at $118.13 on the last check Friday.

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