Jefferies Downgrades Finisar (FNSR) to Hold, Cites Threat From Lightwire Acquisition by Cisco
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Price: $23.77 --0%
Rating Summary:
6 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies downgraded Finisar (NASDAQ: FNSR) from Buy to Hold with a price target of $22 (down from $24).
The firm comments, "Our checks suggest that investors may currently underestimate the potential risks posed by the recently announced acquisition of Lightwire by Cisco (Nasdaq: CSCO). Given this incremental risk and a valuation that is no longer particularly compelling, we’re downgrading Finisar shares from Buy to Hold. At this point we'd rather see investors rotate into JDSU (Nasdaq: JDSU) given its relatively greater exposure to rebounding service provider capex."
The firm raised Q3 EPS from $0.21 to $0.23, FY12 from $0.90 to $0.91 and lowered FY13 from $1.60 to $1.45.
For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.
Shares of Finisar closed at $23.02 yesterday.
The firm comments, "Our checks suggest that investors may currently underestimate the potential risks posed by the recently announced acquisition of Lightwire by Cisco (Nasdaq: CSCO). Given this incremental risk and a valuation that is no longer particularly compelling, we’re downgrading Finisar shares from Buy to Hold. At this point we'd rather see investors rotate into JDSU (Nasdaq: JDSU) given its relatively greater exposure to rebounding service provider capex."
The firm raised Q3 EPS from $0.21 to $0.23, FY12 from $0.90 to $0.91 and lowered FY13 from $1.60 to $1.45.
For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.
Shares of Finisar closed at $23.02 yesterday.
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