NeoPhotonics (NPTN): Raising PT On China Purchase Orders - Needham
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Needham & Company analyst, Alex Henderson, reiterated his Strong Buy rating on NeoPhotonics (NYSE: NPTN) and increased his price target to $22 from $20. Neo thinks it can post 25% plus top line growth in CY17-CY19. The analyst sees expanding GMs and substantial OPEX leverage. Based on upside to top-line, GMs and OPEX leverage the analyst sees as much as $0.30 upside to CY17 estimates.
China Mobile “Phase 12” RFPs are out and point to a 30-60% increase over CY16. The analyst believes RFPs are hard evidence of the next round of systems orders providing scale and timing information and sharply reduces the risk to the optical “Super Cycle” thesis while extending the visibility out through CY17.
Shares of NeoPhotonics closed at $16.48 yesterday.
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