Needham & Company Raises Price Target on Fabrinet (FN) to $32 Post 4Q Beat and Raise
Needham & Company reiterated a Buy rating on Fabrinet (NYSE: FN), and raised the price target to $32.00 (from $28.00), following the company's 4Q earnings report. Overall Revenues came in up 24% as Reported and 29% excluding One-Time Consignment Revenues in the year-ago period. For the March quarter, Fabrinet offered up 4-5% resulting in guidance 12% above the Street forecast. This equates to a 27-30% growth rate.
Analyst Alex Henderson commented, "Fabrinet easily beat CY4Q estimates with a 24% as Reported growth rate and adjusting out a quasi one-time consignment Revenue in the year-ago apples-to-apples growth of 29%. We find these to be impressive results. For the March quarter, Fabrinet offered up 4-5% resulting in guidance 12% above the Street forecast. This equates to a 27-30% growth rate. Fabrinet's 100G business grew 3x in the quarter. The December quarter was driven by Data Comm up 46%, but Fabrinet expects growth to pivot to Telecom in CY16 on Metro, ROADMs and coherent product growth."
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Shares of Fabrinet closed at $25.09 yesterday.