Deutsche Cuts Price Target on NeoPhotonics (NPTN) Following New Q3 Outlook
Tweet Send to a FriendGet Alerts NPTN Hot Sheet
Price: $6.58 +2.81%
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade NPTN Now!
Deutsche Bank is maintaining its Hold rating on shares of NeoPhotonics (NYSE: NPTN) while reducing its price target from $6 to $5.
The company pre-announced its Q3 results with sales expected to be $43-$45 million, below its previous guidance of $48-$53 million. Management noted that downside was due to weaker than expected sales from Huawei.
The firm reports that managements efforts to diversify its revenue stream maybe hurting its margins in the long-run. Currently, Huawia makes up 50 percent of total sales.
An analyst at Deutsche comments, "We have determined our price target using a discounted cash flow analysis. For this, we assume a WACC of 11% and a 5% perpetual growth rate. . Upside risks to the our price target include better than expected demand and design wins, as well as improving operating leverage. Downside risks to our target include further delays in carrier optical upgrades and volatile customer ordering patterns."
Deutsche lowered its FY11 and FY12 EPS estimates from ($0.44) and ($0.06) to ($0.53) and ($0.19).
For more ratings news on NeoPhotonics click here and for the rating history of NeoPhotonics click here.
Shares of NeoPhotonics closed at $6.65 yesterday, with a 52 week range of $5.46-$20.94.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The company pre-announced its Q3 results with sales expected to be $43-$45 million, below its previous guidance of $48-$53 million. Management noted that downside was due to weaker than expected sales from Huawei.
The firm reports that managements efforts to diversify its revenue stream maybe hurting its margins in the long-run. Currently, Huawia makes up 50 percent of total sales.
An analyst at Deutsche comments, "We have determined our price target using a discounted cash flow analysis. For this, we assume a WACC of 11% and a 5% perpetual growth rate. . Upside risks to the our price target include better than expected demand and design wins, as well as improving operating leverage. Downside risks to our target include further delays in carrier optical upgrades and volatile customer ordering patterns."
Deutsche lowered its FY11 and FY12 EPS estimates from ($0.44) and ($0.06) to ($0.53) and ($0.19).
For more ratings news on NeoPhotonics click here and for the rating history of NeoPhotonics click here.
Shares of NeoPhotonics closed at $6.65 yesterday, with a 52 week range of $5.46-$20.94.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- Deutsche Bank Downgrades TRW Automotive Holdings (TRW) to Hold
- UBS Survey Shows Signs of Strength for Gilead's (GILD) TAF
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Deutsche Bank
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
