Needham & Company Reiterates Buy After Spending Time with Fabrinet (FN)

August 30, 2016 7:16 AM EDT
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Price: $37.40 +1.88%

Rating Summary:
    8 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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Needham & Company reiterated a Buy rating and $54.00 price target on Fabrinet (NYSE: FN) after spending time with management. Fabrinet West is likely to hit $10MM per quarter of 15-20% GM revenues per quarter by CY4Q16. The company has immediate demand for over 50,000 additional square feet at the opening for the plant and expects to see additional commitments to over 20% of capacity by year-end.

Analyst Alex Henderson commented, "We visited Fabrinet at its Santa Clara facility and came away impressed. Fabrinet is executing very strongly, ramping production as rapidly as possible, and "bursting at the seams" in its production plants. Strong growth in 100G and Silicon Photonics is driving strong growth. The new facility in Thailand is coming on a bit ahead of schedule, and just in time. Fabrinet already has strong demand for the newly available capacity coming on stream in September. And Fabrinet West is ramping sharply. We are reiterating our Buy rating and $54 Target Price."

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

Shares of Fabrinet closed at $39.33 yesterday.

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