Narrative updates are currently in beta.

Back to narrative

Data Center Upgrades And Fiber Demand Will Unlock Future Opportunities

VIAV logo
VIAV
AnalystConsensusTarget
Not Invested
Published 27 May 2025

Update shared on15 Aug 2025

AnalystConsensusTarget's Fair Value
US$13.41
17.2% undervalued intrinsic discount
15 Aug
US$11.10
Loading
1Y
32.5%
7D
3.0%

Analysts remain divided on Viavi Solutions as robust data center growth and solid Q4 results offset softer service provider demand and muted long-term earnings prospects, leaving the consensus price target unchanged at $13.41.


Analyst Commentary


  • Bullish analysts cite solid fiscal Q4 performance as supporting a higher valuation.
  • Improved results and upside from the data center segment offset weaker service provider demand.
  • Bearish analysts still see limited long-term earnings power despite some recent business strength.
  • Neutral ratings persist from several analysts, indicating a lack of consensus on strong near-term upside.
  • Recent price target increases largely reflect positive momentum in certain business segments, rather than a broad-based turnaround.

What's in the News


  • B. Riley raised Viavi Solutions’ price target to $12 from $11, maintaining a Neutral rating and calling the company’s fiscal Q4 results solid (B. Riley via periodicals).
  • Viavi issued revenue guidance for Q1 FY2026, expecting net revenue between $290 million and $298 million (Key Developments).
  • The company expanded its Open RAN testing capabilities at its VALOR Lab, enhancing colocation and flexibility for customers, supported by U.S. government NTIA funding (Key Developments).
  • Viavi was added to multiple Russell growth indices (e.g., Russell 2000 Growth, 3000 Growth, 2500 Growth), but dropped from corresponding value indices during the late June rebalancing (Key Developments).
  • Recent partnerships and product launches include collaboration with Hanyang University on 5G/6G research, a partnership with 3-GIS to improve fiber fault detection, and the release of the second-generation RSR Transcoder for assured PNT in GPS/GNSS-denied environments (Key Developments).

Valuation Changes


Summary of Valuation Changes for Viavi Solutions

  • The Consensus Analyst Price Target remained effectively unchanged, at $13.41.
  • The Consensus Revenue Growth forecasts for Viavi Solutions remained effectively unchanged, at 6.1% per annum.
  • The Discount Rate for Viavi Solutions remained effectively unchanged, at 8.54%.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.