Harmonic (NASDAQ:HLIT) was raised to Strong Buy from Outperform at Raymond James Thursday, with the firm's analyst Simon Leopold raising the price target by $1 to $16 per share.
Shares of the tech firm have rallied more than 9% so far in Thursday's session, trading above $11 per share.
Leopold stated that the upgrade is based on the firm's more constructive view of the company's 2024 results.
"We hosted investor meetings with management and gained a better understanding of factors influencing 2H23 while also bolstering our confidence in 2024," the analyst wrote.
"We trimmed our 2023 assumptions based on current challenges and an effort to be conservative. We expect 2024 growth driven by the addition of contributions from Charter, Comcast's adoption of DOCSIS 4.0, and improvement from the other 96 CableOS customers," he added.
Raymond James also expects HLIT to post "steady results" from the video segment as it transitions to SaaS.