UPDATE: Stifel Upgrades Finisar (FNSR) to Buy
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(Updated - September 6, 2016 8:08 AM EDT)
Stifel upgraded Finisar (NASDAQ: FNSR) from Hold to Buy with a price target of $28. Analyst Patrick M. Newton highlighted growth, 100G strength and margin potential.
"We are upgrading shares of Finisar from Hold to Buy with a $28 target price given our research, and recent earnings from competitors/customers, indicating continued strength of the current optical communications cycle across both telecom and datacom. Additionally, recent industry checks indicate our concerns around Finisar consisting of the 40G/100G QSFP28 handoff, competitive pricing environment in data center, and lack of margin expansion, have been overblown with our analysis indicating our/consensus estimates have meaningful room for upside," said Newton.
"Our research indicates that if the company were to demonstrate accelerating growth and better than expected margin in coming quarters shares are likely to close the valuation gap to industry peers. From a duration perspective, while we anticipate the stock will outperform over the next couple of quarters driven by fundamentals and multiple expansion, we continue to have longer-term concerns pertaining to competition in data centers which we will constantly monitor," added the analyst.
Shares of Finisar closed at $22.32 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
- UPDATE: Stifel Downgrades Timken (TKR) to Hold
- Jefferies Raises Price Target on Broadcom Ltd. (AVGO) to $210 Following 4Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!