Needham Throws Shade on Acacia's 1.2TB Product Announcement, Reiterates Strong Buy Rating on Infinera Corp. (INFN)

Needham & Company analyst Alex Henderson reiterated a Strong Buy rating and $15.00 price target on Infinera Corp. (NASDAQ: INFN) after Acacia announced its 1.2 TB product is expected to become Generally Available in 2023.

The analyst stated "The announcement of the Acacia product caused a stir with investors, but we think the primary impact to INFN is uncertainty. We do not see the product altering the competitive landscape any more than the 600G Acacia Pico DSP did for Ciena's dominance in the 400G cycle. 600 G has proven to be a small product cycle. The industry standardized on 400G and is poised to leap frog to 800G. By the time the 1.2TB product is GA in the chip, then integrated into products, and then tested by customers, 800G will likely be the primary wavelength in the industry. We have been expecting this announcement and do not see it as news or as disruptive. After 800G, we think Ciena and Infinera will be driving customers to a more disruptive 1.6 TB product cycle on 3 NM DSPs."

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 $8.21 yesterday.

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