Northland views the post election weakness in rural fiber names Calix (CALX) and Clearfield (CLFD), likely driven by concerns that Broadband Equity, Access, and Deployment program funding will be either delayed or more biased toward satellite broadband, as buying opportunities. The state of Louisiana submitted its final proposal for BEAD with 95% of the funds allocated to fiber, the analyst tells investors in a research note. The firm says this shows that many of the state processes are very far along and that fiber will always be the preferred option over the longer term. Northland thinks a likely scenario post the Trump win is that the National Telecommunications and Information Administration opens up the definition of “reliable broadband service” to include satellite and fixed wireless, giving states the flexibility to fund these options in the likely event that fiber is cost prohibitive for an entire state. It had assumed that 10%-plus of BEAD awards would be fixed wireless, and says that percentage is likely to move higher with satellite.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on CALX:
- Trump Trade: President-elect seeks to kill Biden fuel-efficiency rules
- Needham says Louisiana BEAD awards ‘very positive’ for Calix and Clearfield
- Calix revenue bottom is in place, says Craig-Hallum
- Calix Inc. Reports Third-Quarter 2024 Financial Results
- Calix Q3 report ‘right down the middle,’ says Roth MKM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
