Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
Jefferies reiterated a Hold rating on Finisar (NASDAQ: FNSR), and raised the price target to $37.00 (from $28.00), following the company's 2Q earnings report. FNSR reported revenue grew of $369.9M, beating Consensus of $364.3M. EPS hit $0.58, above Consensus of $0.46. Management released revenue guidance of ~$388M, above Consensus of $378M. EPS guidance calls for ~$0.61, ahead of the Consensus of $0.48.
Analyst James Kisner commented, "Q2 results were quite strong with revenue upside and blowout gross margins. Q3 guidance was also strong. Finisar also announced that it is investing in capacity for 3D Sensing. We believe Finisar is likely to continue to benefit from strong trends in Optical components over the next few quarters but are held back due to competitive concerns. Maintain Hold."
Shares of Finisar closed at $34.13 yesterday.