EXFO (NASDAQ:EXFO) to Benefit from Next Generation Network Deployment

EXFO (NASDAQ:EXFO) has the confidence of Canaccord going forward, as they believe they'll be able to take advantage of the Next Generation network deployment trends in the industry.

Canaccord says, "We remain optimistic about EXFO’s ability to capitalize on strong Next Generation network deployment trends (40/100G, FTTx, LTE, Backhaul) and anticipate steady performance in Q1/F11...(For Q1) We forecast continuing operations revenue of $63.5 million (up 8% QoQ and 58% YoY), in line with consensus and $61-66 million guidance...We will be looking for signs that weak book to bill in Q4/F10 (0.96x) has recovered and that EXFO can drive top-line growth through 2011 to offset SG&A and R&D investment."

Canaccord Genuity maintains a "Buy" rating on EXFO Inc., which closed Tuesday at $7.19, gaining $0.06, or 0.84 percent. Canaccord has a price target of $8 on them.