Stifel Raises Price Target on Finisar (FNSR) Following Strong 1Q Report
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Stifel reiterated a Buy rating on Finisar (NASDAQ: FNSR), and raised the price target to $33.00 (from $28.00), following the company's 1Q earnings report. FNSR reported revenue of $341.3 million and pro forma EPS of $0.38 compared to the consensus expectations of $333.7 million and $0.30, respectively.
Analyst Patrick Newton commented, "Finisar printed a July quarter with an aggressive revenue and EPS beat that exceeded our Street high estimates. The revenue and EPS upside (exceeding the high end of guidance) was driven by an aggressive and broad-based rebound in telecom (post unexpected softness last quarter), expense controls, solid 100G trends, and significantly better than expected GM%. Looking to the October quarter Finisar is targeting continued momentum with the low end of the revenue and EPS guidance range well ahead of our above consensus estimates. 100G strength continues to be the driver of demand for both telecom (ROADM/WSS strength) and datacom (CFP/2/4 and QSFP28), with capacity constraints ongoing. Most importantly the improved mix, and conscious decision to walk away from low margin wireless business, has GM% guided to increase to 34% - well above our prior 32% outlook. With our thesis playing out at a faster cadence than expected we reiterate our Buy rating and increase our target to $33."
Shares of Finisar closed at $23.23 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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