Harmonic downgraded to Hold at Jefferies amid Broadband segment softness

As previously reported, Jefferies analyst George Notter downgraded Harmonic (HLIT) to Hold from Buy with a price target of $12.50, down from $14. While Harmonic “printed a strong Q3” and guided in-line for the full year despite a sizable ramp in expectations for Q4, the negative is their expectation for incremental Broadband segment softness in 2025, the analyst tells investors. The firm remains convinced that the cable MSOs still need to upgrade their HFC networks in an increasingly competitive broadband services market and that Harmonic is “still very well positioned to capture business here.” However, Comcast (CMCSA) and Charter (CHTR), which make up 69% of combined sales, present “major customer concentration risk” and the pacing of these rollouts remains challenging, especially at Charter, the analyst added.