Needham & Company analyst Alex Henderson reiterated a Buy rating and lifted his price target on Fabrinet (NYSE: FN) to $26.00 (from $24.00) following a strong quarter and stronger guidance.

Henderson commented, "Fabrinet continues to be one of our preferred vehicles for investing in optical. It has a diversified customer base that insulates it from the vagaries of Telecom Service Provider lumpiness and a valuation that we see as low. Yet it also positions against the strengthening demand trends as the DCI and Metro markets combine with the continuing growth in Long-Haul and the strengthening sub-sea market. It also has a solid story on improving utilization rates through CY16. The quarter was solid and so was the guide. We reiterate our Buy rating and we raise our Target Price to $26 from $24."

· Increasing CY 16 Revenues to $942MM from $900MM

· Increasing CY16 EPS to $1.94 from $1.77

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

Shares of Fabrinet closed at $21.11 yesterday.