Jefferies analyst George Notter lowered the firm’s price target on Calix to $61 from $69 and keeps a Buy rating on the shares. The analyst’s new model has $143M in software revenue this year for Calix and $400M in 2025, with $336M from recurring sales. The company’s overall software business “will scale very quickly going forward,” Notter tells investors in a research note. He says Calix’s recurring revenue story is happening earlier than he anticipated and the contribution from AXOS/EXOS is bigger than he thought. Notter is valued Calix’s combined business at $61 per share, nearly 85% upside from current share levels. Calix Cloud will drive significant long term upside to the company’s earnings power and “we’re still early in this transformation,” writes the analyst.