What Happened?
Shares of network testing solutions company Viavi Solutions (NASDAQ: VIAV) jumped 6% in the morning session after B. Riley raised its price target on the company's stock to $22 from $18 and maintained its 'Buy' rating.
This move by the investment firm suggested a stronger belief in the company's future stock performance. The new price target of $22 indicated a significant potential upside from its previous valuation. By keeping the 'Buy' rating, B. Riley reinforced its positive view on Viavi Solutions. The report also noted that, according to analysts polled by FactSet, the average rating for the stock was 'overweight' with a mean price target of $19.57, showing a generally positive sentiment among market watchers.
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What Is The Market Telling Us
Viavi Solutions’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 5.4% on the news that the company announced enhancements to its XEdge cloud-based edge monitoring and assurance platform with new sensors.
This development for its platform, which helps watch and check performance at the edge of cloud networks, appeared to lift investor sentiment. The positive move was also supported by a favorable outlook from market analysts. A consensus from multiple brokerage firms indicated an 'Outperform' status. Other reports highlighted a 'Buy' consensus rating, showing a generally bullish view of the company's future.
Viavi Solutions is up 9.7% since the beginning of the year, and at $19.91 per share, has set a new 52-week high. Investors who bought $1,000 worth of Viavi Solutions’s shares 5 years ago would now be looking at an investment worth $1,206.
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