Demystifying Viavi Solutions: Insights From 10 Analyst Reviews

In the preceding three months, 10 analysts have released ratings for Viavi Solutions VIAV, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $12.7, a high estimate of $16.00, and a low estimate of $9.50. Marking an increase of 17.38%, the current average surpasses the previous average price target of $10.82.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Viavi Solutions among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Viavi Solutions. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Viavi Solutions compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Viavi Solutions's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Viavi Solutions analyst ratings.

Delving into Viavi Solutions's Background

Viavi Solutions Inc. is an international provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense, and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of its revenue from the United States. Additionally, it manufactures and sells optical filters for 3D sensing products that allow facial recognition security authentication for mobile devices.

Financial Insights: Viavi Solutions

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Viavi Solutions's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.4%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Viavi Solutions's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.36%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.31%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Viavi Solutions's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.53%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.01, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.