Needham & Company Starts Acacia Communications (ACIA) at Buy

Needham & Company initiates coverage on Acacia Communications (NASDAQ: ACIA) with a Buy rating and a price target of $48.00.

Analyst Alex Henderson commented, "We are initiating coverage of Acacia Communications, and with this launch ACIA vaults to the top of our stock recommendation list. Currently, Acacia is driving 50% revenue growth in an industry that we see entering a strong growth phase. Acacia is driving solid margin expansion and is expected to deliver 49% gross margins and 25% operating margins in CY17. This semiconductor and optical components company is priced at just 13.2x EV/E on CY17 forecasts. Further, with sold-out conditions well into the CY2H16, we think our estimates are easily beatable. We think ACIA could easily trade up to 18x EV/E on CY17 estimates, reaching our $48 Target Price."

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

Shares of Acacia Communications closed at $35.90 yesterday.

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