U.S. telecom firms set for 'CapExtravaganza' in 2022, says Jefferies
16/02/2022 13:55
** Jefferies says 2022 appears a "break-out year" for capex
spending by U.S. telecom and networking equipment providers;
adds spending backdrop remains best since two decades
** Spending driven by growing broadband demand and stiff
competition among companies
** North American telecom capex set to rise 11.8% y/y in
2022 after oscillating from -2% to +2% "for a very long time",
Jefferies says, adding estimates don't include $100 bln stimulus
offered by U.S. Federal Reserve
** "We don't believe the improving spending environment is
built into stocks at this point," says Jefferies, identifying
Ciena CIEN.N and Juniper JNPR.N as prime beneficiaries
** Spending strength spread across verticals from telecom
service, internet content providers, and cable operators
** Jefferies also positive on Calix CALX.N , CommScope
COMM.O and Lumentum LITE.O
(Reporting by Siddarth S in Bengaluru)
((Siddarth.s@thomsonreuters.com;))