Piper Jaffray Reiterates Overweight with Fabrinet's (FN) West Facility on Track for Breakeven in December

Piper Jaffray reiterated an Overweight rating and $50.00 price target on Fabrinet (NYSE: FN) after meeting with management. The Fabrinet West facility remains on track to reach breakeven likely in the December quarter. FN’s management is pleased with the traction at Fabrinet West and is contemplating similar facilities in areas with high exposure to Automotive, Health Care, and Industrial Lasers.

Analyst Troy Jensen commented, "We met with Fabrinet’s CFO (Toh-Seng Ng) and CTO (Hong Hou) at the company’s Fabrinet West facility to wrap up our day of optical focused meetings last week. Overall, Fabrinet remains significantly positive with respect to the outlook for growth in optical demand coupled with the company’s ability to win new programs, which is helping Fabrinet grow faster than the overall optical market. We believe Fabrinet’s pipeline remains extremely strong with demand for 100G optics (China, Verizon, and datacom) in relatively early innings of major upgrade cycles. We are also encouraged by the company’s New Program pipeline, and believe sustained growth from new programs will allow the company to continue to experience industry leading growth rates. We continue to view Fabrinet as one of the higher quality, lower-risk ways to play the optical cycle and are reiterating our Overweight rating and $50 price target on FN shares."

For an analyst ratings summary and ratings history on Fabrinet click here. For more ratings news on Fabrinet click here.

Shares of Fabrinet closed at $40.48 yesterday.

You May Also Be Interested In

• Fabrinet to Announce Third Quarter Fiscal Year 2024 Financial Results on May 6, 2024
• EUR/USD looks like it is consolidating before breaking to a new low: ING
• Fiserv (FI) PT Raised to $200 at Evercore ISI