Infinera Corp. (INFN) Results Pressured by Supply, not Demand, Needham Would Buy the Dip

Needham & Company analyst Alex Henderson reiterated a Strong Buy rating and $12.00 price target on Infinera Corp. (NASDAQ: INFN) after the company reported in-line Revenue of $319 million, but a lower-than-expected GM due to supply chain pressures, which cut Revenue by an estimated $30 million, twice the expected impact.

The analyst stated "We think Supply Chain issues will quickly resolve and demand trends that look solid are more important to the outlook. News on the DSP and ICE 6 PIC looks highly promising even as the COVID environment muddies Infinera's ability to sell the capabilities. Broadly, we are encouraged by the print despite the Supply Chain noise, and are a buyer on weakness".

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

Shares of Infinera Corp. closed at $5.40 yesterday.

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