Piper Jaffray reiterated an Overweight rating and $29.00 price target on Fabrinet (NYSE: FN) ahead of the company's 2Q earnings report. Fabrinet is slated to report results after the close on February 1. Piper Jaffray anticipates that the company will beat consensus and guide up for the March quarter.

Analyst Troy Jensen commented, "Fabrinet is slated to report December-quarter results after the close on February 1 and we anticipate the company will beat consensus and guide up for the March quarter. Our confidence is based on recent conversations and reported results from three of Fabrinet's top five customers, which have been implying that near-term demand has exceeded expectations. We also like the set up throughout the year with China demand driving near-term upside, QSFP28 datacom likely to ramp in Q2, and Metro build-outs in the US driving demand in the 2H and beyond. We believe most of the optical stocks will perform well this year, but view Fabrinet as a relatively low-risk, higher-quality investment that is trading at a relatively inexpensive valuation. We are reiterating our OW rating and $29 price target on FN shares."

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Shares of Fabrinet closed at $24.91 yesterday.