BWS Financial: Optical Component In V-Shaped Recovery; Upgrades OCLR & OPLK
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Price: $18.36 +0.88%
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade OPLK Now!
This morning, BWS Financial upgraded Oclaro (Nasdaq:
OCLR)(PT $6.50) and Oplink Communications (Nasdaq: OPLK)(PT $22) to Buy from Hold.
Analyst, Hamed Khorsand, said, "The down cycle that came about at the beginning of calendar 2011 for optical component companies seems to have subsided with the return of demand. Over the last four quarters the industry has gone through an inventory cleaning out process and a flooding in Thailand that forcing some production offline. We believe the worse of the cycle is now over and the industry could see a lift over the next two years. With that in mind, we are upgrading our rating on OCLR & OPLK."
Khorsand also noted, "The recent change in purchasing habit where content delivery networks, like Amazon.com (Nasdaq: AMZN)(No Rating) and Google (Nasdaq: GOOG)(No Rating), are buying directly from the component companies has pushed the optical component industry to an ongoing development process. The network rollouts of such large companies are different where it could change in a matter of a couple of years."
He also noted that the quarterly figures from these optical component companies prove that there is stabilization in the business. Despite a V-shaped recovery, a creep up in production by companies like Fabrinet (NYSE: FN) will help boost OCLR's numbers.
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OCLR)(PT $6.50) and Oplink Communications (Nasdaq: OPLK)(PT $22) to Buy from Hold.
Analyst, Hamed Khorsand, said, "The down cycle that came about at the beginning of calendar 2011 for optical component companies seems to have subsided with the return of demand. Over the last four quarters the industry has gone through an inventory cleaning out process and a flooding in Thailand that forcing some production offline. We believe the worse of the cycle is now over and the industry could see a lift over the next two years. With that in mind, we are upgrading our rating on OCLR & OPLK."
Khorsand also noted, "The recent change in purchasing habit where content delivery networks, like Amazon.com (Nasdaq: AMZN)(No Rating) and Google (Nasdaq: GOOG)(No Rating), are buying directly from the component companies has pushed the optical component industry to an ongoing development process. The network rollouts of such large companies are different where it could change in a matter of a couple of years."
He also noted that the quarterly figures from these optical component companies prove that there is stabilization in the business. Despite a V-shaped recovery, a creep up in production by companies like Fabrinet (NYSE: FN) will help boost OCLR's numbers.
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