Infinera Corp. (INFN) PT Lowered to $9 at Needham & Company

Needham & Company analyst Alex Henderson lowered the price target on Infinera Corp. (NASDAQ: INFN) to $9.00 (from $14.00) while maintaining a Strong Buy rating.

Henderson commented, "It appears that the crush associated with merging two companies is causing duress and Infinera is offering a lower starting point than most had expected. Infinera stated there has been some pause in purchasing at Coriant going into the merger and as a result, Infinera is offering Revenue guidance for the CY4Q quarter of just $325 million and CY19 guidance of $1.4 billion. This is $200 million lower than the initial expectations of $1.6 billion. GM is starting at a 30% level and OPEX at $140 million, translating into a steep $0.28 loss for CY4Q. However, Infinera noted they were already seeing the pause abating and the response from customers is highly positive. Infinera expects to be profitable by year-end CY19. We think the stock is oversold and maintain our Strong Buy rating."

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