VIAV Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
BUY now. VIAV is in a strong upside trend with bullish momentum (MACD expanding, bullish MA stack) and a clear fundamental catalyst set (beat-and-raise quarter, strong Q3 outlook, Spirent asset integration, and a $30M annual cost-savings restructuring). Despite being overbought short-term, sentiment (options + analysts + news) remains decisively constructive, making it a good buy for an impatient investor who doesn’t want to wait for a perfect pullback.
Trend is bullish and accelerating: SMA_5 > SMA_20 > SMA_200 confirms an established uptrend, and the MACD histogram at +0.613 is positive and expanding (momentum strengthening). The main near-term technical issue is RSI_6 at 87.6, which signals an overbought condition and increases the odds of a brief consolidation or dip. Price is around 24.01, just above R1 (23.842) and below R2 (25.475); a clean push toward ~25.5 is the next upside level, while prior breakout/first support sits near ~23.84, and deeper support is around the pivot ~21.20.
Fiscal 2026/Q2: Revenue grew to $369.3M (+36.37% YoY), indicating strong top-line acceleration (consistent with AI/data-center demand and acquisition contribution). The provided snapshot shows GAAP Net Income at -$48.1M and EPS -$0.21 (both down sharply YoY) and gross margin 55.02% (down ~6.76% YoY), pointing to margin pressure and/or one-time costs. However, the news summary highlights non-GAAP net income rising to $51.5M (+75%) and EPS of $0.22, implying underlying operating performance is improving while GAAP results likely reflect integration/restructuring/accounting impacts.
Recent trend is strongly positive: a cluster of firms raised price targets after the Q2 beat-and-raise. Needham lifted PT to $28 (Buy), Northland to $27.50 (Outperform), B. Riley to $26 (Buy), Susquehanna to $25 (Positive), Stifel to $24 (Buy), and UBS to $25 while staying Neutral. Wall Street pros: accelerating AI/data-center testing demand, Spirent-driven EPS upside and synergy savings, expanding TAM (LPO/CPO, high-speed Ethernet validation), and improving forward model assumptions (some see EPS power >$1). Cons: one Neutral holdout (UBS) and near-term digestion risk after a sharp move; GAAP noise from integration/restructuring can complicate the story.
