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Goldman Sachs Upgrades Infinera Corp. (INFN) to Buy

March 12, 2014 6:49 AM EDT Send to a Friend
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Price: $9.05 -0.88%

Rating Summary:
    8 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 23 | New: 13
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Goldman Sachs upgraded Infinera Corp. (NASDAQ: INFN) from Neutral to Buy with a price target of $11.50 on the 100G optical cycle.

Analyst Simona Jankowski notes shares have lagged the market over the last 12 months and are down 12% ytd (vs. the S&P 500 up 2%), which is likely due to the fact that Infinera was not selected for the Verizon second source 100G long-haul contract, losing the deal to Alcatel-Lucent. Since that time, however, Infinera beat 4Q earnings expectations and guided for an above- seasonal and above-consensus 1Q, highlighting the strength of its 100G DTN-X optical product cycle.

"We believe consensus is underestimating the revenue growth potential associated with customer upgrades and market share gains in 100G long haul, which is forecast to grow at nearly a 40% CAGR through 2015," Jankowski said.

For an analyst ratings summary and ratings history on Infinera Corp. click here. For more ratings news on Infinera Corp. click here.

Shares of Infinera Corp. closed at $8.45 yesterday.




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