Needham & Company reiterated a Buy rating on NeoPhotonics (NYSE: NPTN), and raised the price target to $16.00 (from $12.00), following the company's 4Q earnings report. EPS came in at $0.16 versus street and our estimates at $0.10. The normally seasonally weak first quarter is now expected to be 12%-18% above the Street estimates.

Analyst Alex Henderson commented, "Neo Photonics reported a strong “Beat and Raise” quarter. Strong China demand sets-up visibility through the June Quarter and potentially beyond. NeoPhotonics reported Revenues 7.5% above forecast and guided up 3%-10% Q-Q as compared to Street estimates which were down Q-Q on the lower number. The normally seasonally weak first quarter which includes a major Chinese holiday week and the full impact of the annual price reductions is now expected to be 12%-18% above the Street estimates. Gross Margins came in 40 BPs ahead of forecast and EPS came in at $0.16 versus street and our estimates at $0.10."

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Shares of NeoPhotonics closed at $11.59 yesterday.