UPDATE: Goldman Sachs Lowers PT on Calix from $7 to $6

Goldman Sachs maintained a Neutral rating on Calix

and lowered its price target from $7 to $6. Goldman Sachs commented, “Calix no longer expects a return to normal Tier 3 spending at least through year-end, as guidance for flat sequential 3Q revenues implies a second consecutive yoy revenue decline. We believe this is partly because Broadband Stimulus (BBS)-driven spend is proving to be substitutive to service providers' runrate capex rather than additive. We estimate Calix's base US business (ex-BBS) declined about 18% yoy in 2Q and will decline another 7% yoy in 3Q and 4Q, as a result offsetting potential gains from BBS.” Calix closed at $4.61 on Tuesday.