Infinera Corp. (INFN) Looks "Substantially Undervalued" After Analyst Day - Needham & Company

May 24, 2021 6:55 AM EDT
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Price: $8.37 --0%

Rating Summary:
    16 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 10
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Needham & Company analyst Alex Henderson reiterated a Strong Buy rating and $15.00 price target on Infinera Corp. (NASDAQ: INFN) after attending the company's analyst day that highlighted 800G is starting a 7 to 10 year investment cycle. The analyst believes the company has one of the best products and will likely end up in a "two horse race" with Ciena in a market expected to be $3 - $4 billion.

The analyst noted that management "detailed its business model targets for the CY20-CY23 period and its longer term expectations out through CY25. The forecasts are predicated on strong dynamics for the 800G ICE-6 product, the strong position of Infinera in Open Line Systems, and the potential for the XR point to multi-point edge product. Infinera expects to deliver an acceleration to 8%-12% growth and 300-400 BPs improvement in Operating Margins annually, reaching double digits in CY23 and mid-teens by CY25. We believe Infinera is at the early stages of a major revitalization on the strength of its new products, similar to the strong run Ciena had when it owned the 400G market for 3-4 years. We think the stock is substantially undervalued."

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 $9.06 yesterday.



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