Needham & Company reiterated a Buy rating on Alliance Fiber Optic Products (NASDAQ: AFOP), and cut the price target to $20.00 (from $25.00), following the company's 3Q. AFOPs customer concentration to its Top Customer has been more than halved. The bad news is the top customer fell from 38% in CY2Q to just 14% in CY3Q.

Analyst Alex Henderson commented, "AFOP's top customer has a new CFO who is reining in spending and has sharply corrected in-house inventory, resulting in a 70% decline in sales to this customer even as the rest of AFOP's customers grew 32%. AFOP believes this is temporary and that this customer will then be much more aggressive in buying as the underlying demand growth remains strong. We hope to see them rebound once this correction passes. We trim estimates and lowering our PT to $20 from $25 but maintain our Buy rating."

For an analyst ratings summary and ratings history on Alliance Fiber Optic Products click here. For more ratings news on Alliance Fiber Optic Products click here.

Shares of Alliance Fiber Optic Products closed at $17.87 yesterday.