UPDATE: Citi Upgrades Infinera Corp. (INFN) to Neutral
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Citi analyst Jim Suva upgraded Infinera Corp. (NASDAQ: INFN) from Sell to Neutral with a price target of $11.50 (from $7.00).
The analyst comments "We are upgrading Infinera to Neutral/High Risk from Sell/High Risk and increasing our target price to $11.50 from $7. Infinera is one of the top five vendors in the optical transport market, and its market share is finally growing after a prolonged time of loss. There is an opportunity to gain share from Huawei, the number-one optical transport vendor. Also, margin expansion is expected in 2H’21 and into 2022 as Infinera begins to sell more vertically integrated products that use its optical engine (photonic integrated circuit [PIC] + digital signal processor [DSP]), which accounts for ~70% of the bill of materials (BOM) for an optical system. These positives are offset by Infinera’s volatility, history of execution challenges, cash burn, and small relative size. The next catalysts for the stock are its Q4’20 earnings call in February 2021 and upcoming Analyst Day in March 2021."
Shares of Infinera Corp. closed at $11.19 yesterday.
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