VIAV - Viavi stock dips after JPMorgan downgrade on lack of M&A

grandriver/E+ via Getty Images Citing valuation and the lower possibility of M&A activity, J.P. Morgan downgrades Viavi (VIAV) from Overweight to Neutral with a $19 price target. Analyst Samik Chatterjee expects revenue to recover amid the accelerated ramp of field equipment deployments during the summer but sees the upside as largely priced in at the current valuation. Chatterjee also throws cold water at expectations that Viavi will drive future inflections off of M&A to scale NE revenue, as has happened historically. The analyst sees limited near-term M&A potential due to a drought of willing sellers. Viavi shares are down 2.4% pre-market to $16.02. Last month, the controlling shareholder of network test and monitoring company EXFO turned down Viavi's acquisition offer.

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Viavi stock dips after JPMorgan downgrade on lack of M&A