Fabrinet (FN): Strong Orders Indicate Upside, Raising PT - Needham

Needham & Company analyst, Alex Henderson, reiterated his Buy rating on shares of Fabrinet (NYSE: FN). He is also increasing the price target on FN. His positive view is based on the strength of current demand, the expectations of further sizable orders out of China, the start of the major Metro Core upgrade, and the looming Data Comm upgrade cycle. He thinks Fabrinet estimates look conservative and expects consistent positive earnings surprises and rising estimates. He also thinks these shares look attractive based on his expectation of 25-35% growth and the modest 12x EV/E ratio. He prefers the Optical Component names as they are more leveraged but sees FN as the lowest risk way to participate in the strong Optical Cycle.

The PT jumps to $48 from $45.

Abercrombie & Fitch Co. (NYSE: NF)

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

Shares of Fabrinet closed at $37.96 yesterday.

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