Stifel Raises Price Target on Oclaro (OCLR) to $10; Reiterates Buy

September 6, 2016 8:52 AM EDT
Get Alerts OCLR Hot Sheet
Price: $8.18 -3.65%

Rating Summary:
    12 Buy, 2 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Stifel reiterated a Buy rating on Oclaro (NASDAQ: OCLR), and raised the price target to $10.00 (from $7.50). Stifel sees potential for upside in gross margins, with the potential to expand toward 35% over the next several quarters. Stifel also currently sees an upside driven by the strong ramp in 100G, which grew 134% y/y and 36% q/q in the latest reported 4Q FY16 results.

Analyst Patrick Newton commented, "We are increasing our target price on Oclaro to $10.00, up from our previous target of $7.50 driven by an increase in our expected multiple, matching our target multiple for Lumentum (Buy, $35.24). We consider 20x our FY18 EPS estimate of $0.50 to be a fair valuation as we see a number of drivers offering potential upside to our current estimates."

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

Shares of Oclaro closed at $8.39 yesterday.

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