FUD Sinks Finisar (FNSR) but Don't Believe Hype
Tweet Send to a FriendGet Alerts FNSR Hot Sheet
Price: $12.96 -2.34%
Rating Summary:
9 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
9 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade FNSR Now!
Last Friday Finisar Corp. (Nasdaq: FNSR) stock dropped on rumors that Intel (Nasaq: INTC) was becoming a threat. The selloff is being liked to innuendo that CPAK advances put Intel in close competition with Finisar. These fears are misguided in the view of Needham and Company analyst Alex Henderson, and he issued sharp criticism of the idea.
"We do not see CPAK as superior to Finisar's current or future technology. We point out that Intel's technology is applicable to very short PCI Bus architectures and has tightly constrained distance limitations. The physical limitations of silicon, lasers and composite chips limit Intel's design to very short distances for connectivity within a single rack where optics are not used. It is replacing copper in a rack, and is not replacing any Finisar offerings," said Henderson.
Henderson called the rumors FUD and reiterated a Buy rating on Finisar with a price target of $18.
For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.
Shares of Finisar closed at $13.98 yesterday, with a 52 week range of $10.95-$23.50.
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
"We do not see CPAK as superior to Finisar's current or future technology. We point out that Intel's technology is applicable to very short PCI Bus architectures and has tightly constrained distance limitations. The physical limitations of silicon, lasers and composite chips limit Intel's design to very short distances for connectivity within a single rack where optics are not used. It is replacing copper in a rack, and is not replacing any Finisar offerings," said Henderson.
Henderson called the rumors FUD and reiterated a Buy rating on Finisar with a price target of $18.
For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.
Shares of Finisar closed at $13.98 yesterday, with a 52 week range of $10.95-$23.50.
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'
- Cisco (CSCO) PT Raised to $26.50 at Nomura
- KeyBanc Upgrades Cedar Shopping Centers (CDR) to Hold
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Needham & Company
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!
