harmonic incs stock fell 14 to 926 on persistent supply challenges that weigh on profit margin and put into question if the company will be able to meet 2024 targets reaching or exceeding 60 in the video segment looks achievable however we doubt harmonic achieves 60 in cable access and we would consider exceeding 50 in cable access as a more realistic goal raymond james simon leopold victor chiu and jeff koche wrote referring to harmonics gross margin guidance they maintain the outperform rating and 12 price target on the virtualized cable access and video delivery solutions company citing healthy sales trends with backlog and deferred revenue reaching 441 million up 32 from the previous quarter and nearly 52 from the prior year chief executive patrick harshman said the companys guidance reflects an expectation that supply will remain constrained so we definitely have taken a haircut on that he said further he said what we can supply is going to be a high cost for the full year the company reported gross profit margin for the cable access segment narrowed to 403 in the most recent period from 537 a year earlier and company officials projected 36 to 38 for the first quarter but company officials remained positive on the companys longterm guidance and said that theyve taken steps including price increases but in some cases agreements havent kicked in yet or only kicking in now in q1 or kicked in late in q4 mr harshman said adding we expect more benefits from that over the course of 2022 thats part of the answer to improving gross margins above and beyond what were forecasting for q1 but i also have to say it is a moving target we dont think were done seeing surprises