Roth has ‘near-term high conviction’ in three stocks post conference

Roth MKM emerged from Roth’s annual communications conference with “near-term high conviction” in shares of PowerFleet (AIOT), Calix (CALX), and Aviat Networks (AVNW). While macro uncertainty continues to weigh on company outlooks and operational planning, general underlying demand “continues to be healthy, albeit a bit tenuous,” the analyst tells investors in a research note. Roth says the absence of Broadband Equity, Access, and Deployment funding is driving a spending influx, benefiting broadband providers. In the potential absence of near-term government funding, broadband providers are expanding spending budgets based on attractive returns on investment, contends the firm. Roth also expects BEAD spending will resume after the appointment of a new head of the National Telecommunications and Information Administration.