UPDATE: Goldman Sachs Downgrades Calix as Positives Appear Priced In

In a report published Tuesday, Goldman Sachs analyst Simona Jankowski downgraded the rating on

from Neutral to Sell, but raised the price target from $11.00 to $12.00. In the report, Goldman Sachs noted, “We downgrade Calix shares to Sell from Neutral with shares up 163% over the past year vs. the S&P 500 up 16%; we think the upward estimate revision cycle is now behind us and valuation is full at 19X our CY14 non-GAAP P/E. We see 2013 estimates constrained by declining tier-2 carrier capex and share gains by Adtran (Buy). We also expect tier-3 capex to normalize in 2014 after a big recovery in 2013 following the regulatory uncertainty of 2012. Longer-term, Calix will need a stronger international ramp to offset expected Broadband Stimulus (BBS) revenue declines in 2015. We see 14% downside to our price target vs. 3% average upside for our coverage.” Calix closed on Monday at $13.90.