Needham & Company Reiterated Buy on Finisar (FNSR) Despite Soft Guide
Needham & Company reiterated a Buy rating and $18.00 price target on Finisar (NASDAQ: FNSR) following the company's 2Q earnings report. Despite the solid quarter against low expectations, the guide was still softer than Street estimates. New Products, stabilizing pricing in Data Comm, and strong growth in several key areas are helping to find a base from which to grow.
Analyst Alex Henderson commented, "We had been bracing for worse, but improvements out of China and strong volumes were enough to offset pricing pressures in Data Comm. Further, improving demand in ROADMs and T-XFP 10G metro aggregation products helped results. Despite the solid quarter against low expectations, the guide was still softer than our and Street estimates. As a result, we are trimming estimates. But we think we have not only found a base, but the bad news appears to be over for Finisar."
For an analyst ratings summary and ratings history on Finisar click here. For more ratings news on Finisar click here.
Shares of Finisar closed at $11.64 yesterday.