Needham & Company Raises Price Target on NeoPhotonics (NPTN) Following 2Q Results

August 9, 2016 6:53 AM EDT
Get Alerts NPTN Hot Sheet
Price: $10.75 +2.97%

Rating Summary:
    6 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company reiterated a Strong Buy rating on NeoPhotonics (NYSE: NPTN), and raised the price target to $20.00 (from $18.00), following the company's 2Q earnings report. By CY4Q end, Neo should be producing roughly 75,000 iTLAs per quarter up from 28,000 in CY1Q. Needham increased revenue estimates for CY16 to $421 million.

Analyst Alex Henderson commented, "Neo's CY2Q was a surprise. The reported numbers were just in-line as PONS fell off sharply and Neo moves to end-of-life this lowmargin legacy product line. Conversely, the 100G line was strong - sold-out, and ramping sharply. We are trimming $20 million of PONs Revenues from the model and increasing our overall Revenue forecast on strong 100G and ramping capacity. We view this as good news and a significant improvement in business quality. We are increasing our estimates, raising our Target Price and Reiterating our Strong Buy Rating."

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 $13.40 yesterday.

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