Acacia (ACIA) Tone from Conference 'Confident and Upbeat' - Needham & Company

Needham & Company analyst Alex Henderson weighed in on Acacia Communications (NASDAQ: ACIA) at attended a one-on-one and the presentation/Q&A of Acacia at Day 1 of the Needham & Company Growth Conference.

Henderson commented, "Broadly speaking, the tone was confident and upbeat. Management noted they expect continued growth and share gains with growth in Metro, DCI, and China driving results. On China: In the one-on-ones, Acacia was clear they see strong demand in China and expect solid growth. While there is always some seasonality in China in CY1Q with the new year, the demand remains strong. In the conference presentation, the comment seemed a little less confident, but we think based on the prior conversation this reflected a bit of a stumble, not a change in tone. Acacia expects strength and demand remains strong; there was no hedging to that point. Within China, there is a shift from spending on the national backbone to spending in the provincial build-outs. Acacia made the point that they expect this demand to be spread out over multiple quarters. Acacia noted: “The POs are coming through as expected and we expect strength from this market.” CY1Q in China always starts a little slow but picks up robustly as the quarter progresses."

The firm maintained a Buy rating and price target of $125 on ACIA.

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

Shares of Acacia Communications closed at $63.62 yesterday.

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