Needham & Company Reiterates Buy on Oclaro (OCLR) Following 3Q - PT to $7
Needham & Company reiterated a Buy rating on Oclaro (NASDAQ: OCLR), and raised the price target to $7.00 (from $6.50), following the company's 3Q earnings report. Needham Increased CY16 revenue estimates to $467MM from $439MM, and EPS to $0.19 from $0.13.
Analyst Alex Henderson commented, "Oclaro is sold out on the majority of its product lines well into CY2H16 back-half. Its 100G Products grew 94% year-over-year and now account for 58% of Revenues. The key Coherent ACO100G CFP2 Pluggable product is now ramping in scale production which significantly de-risks the investment thesis. Management noted strengthening growth out of China, significant demand growth just starting to ramp in Metro Telecom, and a major upgrade to 25G architectures in Data Comm as the primary drivers of its growth trajectory. These are very large powerful demand drivers. We are sharply increasing our Revenue and EPS estimates and taking our Target Price up to $7.00 from $6.50."
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Shares of Oclaro closed at $5.12 yesterday.