Piper Jaffray reiterated an Overweight rating on Fabrinet (NYSE: FN), and raised the price target to $26.00 (from $25.00), following the company's 4Q15 earnings results. Revenue of $206.5M was ~$8.8M ahead of consensus ($197.7M) and well above the midpoint of management’s guidance ($195-199M). Non-GAAP EPS of $0.40 was slightly above consensus of $0.39 and the company’s guidance ($0.37-0.39). Management guided for FQ1 revenue of $206-210M versus consensus of $204.8M. The company is targeting non-GAAP EPS of $0.41-$0.43 for the quarter (consensus $0.42).

Analyst Troy D. Jensen commented, "Fabrinet reported solid FQ4 results with revenues, EPS and FQ1 guidance all nicely above consensus expectations. The company expects to be up sequentially in all business segments for the September quarter and we believe the theme of growth in optical communications (driven by 40/100G Datacom and 100G telecom upgrades) remains intact and we remain buyers given the current valuation and our expectation for 10% + earnings growth in the next 3-5 years. We believe long term demand trends are strengthening within the market, which should benefit Fabrinet given its leverage to several leading optical vendors. We are reiterating our Overweight rating, and increasing our price target to $26 from $25."

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Shares of Fabrinet closed at $18.87 yesterday.