Viavi Solutions Is 'A Solid, Less Volatile Way' To Invest In Secular Trends, Analyst Says

Viavi Solutions Inc. VIAV is well positioned for markets that have secular growth prospects, according to Rosenblatt Securities.

The Analyst: Mike Genovese initiated coverage of Viavi Solutions with a Buy rating and a price target of $18.

Genovese cited the Scottsdale, Arizona-based company's potential with FTTP, Hyper-Scale Data Centers, 400+G bandwidth upgrades, 5G field test and service assurance, and 3D Sensing for consumer, automotive and industrial applications.

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The Thesis: Viavi has a long history of technology leadership. Its management team has a track record of “expanding its core high market share businesses and selectively expanding into adjacencies to help with growth and NOL monetization,” Genovese said.

Management has also expanded operating margins by increasing productivity, and “we expect this will continue,” the analyst stated.

“We see VIAV as a solid, less volatile way to invest in the major secular trends driving the positive investment case for our group,” he added.

VIAV Price Action: Shares of Viavi Solutions had risen by 0.72% to $14.03 at the time of publication Thursday.