Needham & Company Raises Price Target on NeoPhotonics (NPTN) Following 2Q Results
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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."
Shares of NeoPhotonics closed at $13.40 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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