Needham & Company Upgrades NeoPhotonics (NPTN) to Strong Buy

Needham & Company upgraded NeoPhotonics (NYSE: NPTN) from Buy to Strong Buy with a price target of $18.00 (from $17.00).

Analyst Alex Henderson commented, "Neo is poised for a sharp acceleration in revenues that should drive gross margins rapidly to the 35% range and operating margins well above Street expectations. At just 0.9x EV/Sales and 10.6x EV/E, we think NPTN is significantly undervalued. We expect Neo to deliver 25%+ revenue growth with plenty of leverage. As new capacity comes on stream in CY3Q and CY4Q against a sold-out backdrop, Neo should have exceptionally strong results. We are upgrading our rating to Strong Buy from Buy and our price target to $18 from $17. We would buy these shares now."

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

Shares of NeoPhotonics closed at $11.13 yesterday.

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