Rosenblatt Starts Infinera Corp. (INFN) at Buy

Rosenblatt analyst Mike Genovese initiates coverage on Infinera Corp. (NASDAQ: INFN) with a Buy rating and a price target of $12.00.

The analyst commented, "We are initiating coverage of Infinera with a Buy rating and $12 price target. INFN is our top pick in the Optical Systems space. Telecom & Cloud capex is looking strong and resilient. Demand for 400G/600G/800G subsea, long haul and Metro, and 100G/200G/400G Edge networks is robust. The market acceptance of Infinera’s ICE-6 products is high, with many new customers and design wins, including more than a handful of Tier 1 U.S. and international Telcos and ICPs. Infinera is generating strong industry interest in ICE-XR point-to-multi-point pluggables, which should be a further growth driver in 2023. Product bookings set records in 2021 as backlog increased 100% y/y. Management guided revenues to grow 8%-12% annually from 2022-2025. The company's margins are increasing, even with an industry mix-shift to footprint that is hurting competitor’s GMs, driven by the more important shift to vertically-integrated products like ICE-6 and ICE-XR. Infinera expects GMs to improve 300bps-400bps this year and next, and sees OMs up 200bps-300bps per year as it invests in ICE-7 and ICE-8. We view INFN as a strong second player in the high-end Optical Systems market to Ciena (CIEN, rated Buy), and as a better equity this year."

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 $8.49 yesterday.

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