EXFO (NASDAQ:EXFO) Should Capitalize on Network Deployment Trends

With network deployment trends continuing to expand, Canaccord believes EXFO (NASDAQ:EXFO) is positioned to capitalize on the growing market.

Canaccord says, "We remain optimistic about EXFO’s ability to capitalize on strong Next Generation network deployment trends (40/100G, FTTx, LTE, Backhaul) through share gain and market growth. This view is reinforced by our Telecom CapEx survey which highlights fiber and LTE network builds as key carrier priorities. With a more optimistic fiber deployment outlook, we are reiterating our rating and raise our PT."

Canaccord Genuity maintains a "Buy" rating on EXFO Inc. (EXFO), which closed Monday at $9.64, up $0.04, or 0.42 percent. Canaccord raised their price target on EXFO from $10 to $11.

EXFO (NASDAQ:EXFO) Aligned with Next-Generation Network Deployment Trends, Says Canaccord

Record revenue and bookings for the first quarter of 2011 reinforced the view of Canaccord that EXFO (NASDAQ:EXFO) is aligned with next-generation network deployment trends.

Canaccord says, "EXFO reported a strong Q1/F11 with record revenue and bookings and provided a higher-than-expected outlook. EXFO’s results reinforced our view that the company is aligned with next-generation network deployment trends and is well positioned to grow all segments through share gain and market growth...Q2/F11 guidance of $70-75 million and GAAP EPS of $0.03-0.07 was far beyond our $62.2 million/$0.03 estimate and consensus at $63.6 and $0.04. We have adjusted our 2011 and 2012 estimates."

Canaccord Genuity maintains a "Buy" rating on EXFO Inc., which closed Thursday at $9.06, gaining $1.49, or 19.66 percent. Canaccord boosted their price target on EXFO from $8 to $10.

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.