Update shared on 27 Oct 2025
Fair value Increased 2.00%Analysts have increased their price target for Viavi Solutions, raising the fair value estimate from $14.29 to $14.57. This reflects growing optimism on the company’s recent acquisition activity and enhanced AI Optical exposure.
Analyst Commentary
Recent analyst reviews highlight a mix of optimism and caution regarding Viavi Solutions’ strategic moves and valuation outlook. The following points summarize the key bullish and bearish takeaways from the latest research updates:
Bullish Takeaways- Bullish analysts believe the recent Spirent acquisition significantly enhances Viavi’s scale in AI Optical and related technology markets and may accelerate future growth.
- The closure announcement of the Spirent deal is seen as a positive catalyst that increases investor confidence in the company’s strategic execution.
- Recent price target raises reflect increased optimism about Viavi’s ability to leverage acquisitions for higher value creation and improved market positioning.
- Solid performance in recent quarters, particularly on the data center side, has offset some weaker areas and contributed to positive valuation adjustments.
- Some bearish analysts remain cautious about ongoing service provider demand weakness, which could limit upside in spite of positive acquisition news.
- There are concerns about the long-term earnings power of Viavi, and some believe growth prospects may be constrained by sector headwinds.
- While price targets have been raised, certain analysts maintain a neutral outlook, reflecting uncertainty regarding the company’s ability to fully capitalize on recent opportunities.
- The discontinuation of coverage by at least one major brokerage signals potential hesitancy concerning sustained execution and future performance visibility.
What's in the News
- B. Riley raised Viavi's price target to $12 from $11 following a solid fiscal Q4 report and is maintaining a Neutral rating (B. Riley).
- Viavi has expanded its ONE LabPro testing platform with the launch of the ONE-1600ER module, which features advanced support for next-generation 1.6Tb optical components and will showcase innovations at ECOC 2025 in Copenhagen (Company Announcement).
- The company introduced new rugged handheld testers, OneExpert Fiber and OneExpert HFC, designed for efficient multi-gig fiber service activation and validation up to 10 Gbps. These products will be displayed at SCTE Tech Expo 2025 (Company Announcement).
- Viavi announced a partnership with CrowdStrike to integrate its Observer network observability platform with CrowdStrike Falcon Next-Gen SIEM, which will provide enhanced network performance and security intelligence for joint customers (Company Announcement).
- At its upcoming AGM, Viavi will propose amending its Certificate of Incorporation to include an officer exculpation provision (Company Filing).
Valuation Changes
- Consensus Analyst Price Target: The fair value estimate has risen slightly from $14.29 to $14.57 per share.
- Discount Rate: The discount rate has fallen marginally from 8.78% to 8.70%.
- Revenue Growth: Projected revenue growth remains essentially unchanged at 5.83%.
- Net Profit Margin: The forecasted net profit margin is steady, holding at approximately 17.68%.
- Future P/E: The future price-to-earnings ratio has increased modestly from 18.37x to 18.70x.
Disclaimer
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