Needham & Company Boosts PT on NeoPhotonics (NPTN) Post Q1

May 10, 2013 7:43 AM EDT
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Price: $10.97 --0%

Rating Summary:
    6 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 6 | New: 3
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Needham & Company reiterated its Buy rating and raised its price target on Buy-rated NeoPhotonics (NYSE: NPTN) from $7.50 to $9 on solid Q1 results and guidance.

Analyst Alex Henderson comments, "Neo reported 1Q Revenues ahead of our forecast and above the company's guidance coming in at $56 million versus guidance of $50-$55 million. The 40G/100G portion of Neo's revenues increased to 39% from 30% with the vast majority of that from 100G. 100G sales increased 41% Q-Q. Neo expects strong growth to persist in this arena. Core to our investment thesis in NPTN is the fact that Neo has the highest percent of Revenues from 40G/100G among all the companies in the optical components market with well over 30% coming from coherent."

The analyst notes Huawei accounted for 27% of revenues and the company is well positioned for China Mobile's 100G spending.

FY 2013 EPS estimates were raised from ($0.19) to ($0.12) and FY 2014 EPS from $0.22 to $0.27.

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

Shares of NeoPhotonics closed at $5.84 yesterday.

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