Needham & Company Convinced of Fabrinet's (FN) Strength Following NDR - PT Raised to $28

Needham & Company reiterated a Buy rating on Fabrinet (NYSE: FN), and raised the price target to $28.00 (from $26.00), after spending time with management. Needham came away from the NDR convinced in the company's strength to drive shares higher. Despite Ciena’s soft guide, which Needham thinks reflects revenue recognition timing more than demand conditions, FN is seeing strengthening demand across most of its core product lines.

Analyst Alex Henderson commented, "We are increasing our Target Price to $28, though we note that we believe this is conservative. We hosted Fabrinet on a three-city NDR and come away convinced there is more than enough strength to drive FN shares higher. Accordingly, we reiterate our Buy Rating. Fabrinet is the CMS for a number of critical optical components that are in tight supply, including ROADM blades, Pump Lasers and AMPs, CFP2/4 100G Data Comm and Telecom products, CFP4 Data Comm, QSFP28 100G Data Comm, some iTLA and modulators for 100G coherent and some coherent pluggable mods. As volume ramps, it leverages GMs and OPEX, helping margins expand. We are reiterating our Buy rating."

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 $21.85 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Amphenol (APH) PT Raised to $130 at Evercore ISI, Remains Top Pick
• Prudential Financial (PRU) PT Raised to $116 at Evercore ISI