Infinera (INFN) Attends Pac-Northwest; Needham & Company Reiterates Buy

Needham & Company reiterated a Buy rating on Infinera Corp. (NASDAQ: INFN), and raised the price target to $25.00 (from $24.00), after hosting the company through the Pac-Northwest. Infinera is seeing solid demand conditions, strong uptake in the DCI market and is starting to see the synergies from the Transmode acquisition.

Analyst Alex Henderson commented, "We hosted Infinera through the Pac-Northwest and come away feeling pretty good about Infinera and the overall optical market. Infinera is seeing solid demand conditions, strong uptake in the DCI market and is starting to see the synergies from the Transmode acquisition. We are raising our TP to $25 from $24 based on 26x EV/E and 3.7x EV/Sales. This increase reflects our growing confidence in the improving end market demand conditions, Infinera’s broader product line and opportunities in Metro and the strength of the DCI sector. We think our forecast for Revenues and Margins is conservative. We expect Infinera to continue to expand Revenues at double-digit rates and to expand Gross Margins and Operating Margins in CY16, CY17 and CY18."

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 $21.65 yesterday.

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