FUD Sinks Finisar (FNSR) but Don't Believe Hype

January 22, 2013 9:32 AM EST
Get Alerts FNSR Hot Sheet
Price: $28.86 -2%

Rating Summary:
    15 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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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.

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