Craig-Hallum analyst Richard Shannon said Finisar's Q4 sales results and outlook that were in-line with the consensus were overshadowed by the continued gross margin/EPS difficulties the company is having. In a research note to investors, Shannon said gross margins are likely bottoming due to 3DS transitions, cost-downs in 100G datacom and positive telecom mix, and the scale of potential improvement may be dramatic -- when it occurs. He adds the stock moves largely on gross margins trends, and while EPS forecasts come down in the near-term, investors focusing on a year out may be more positive. Shannon says the risk/reward appears favorable, continues to rate the stock as a Buy but lowers his price target to $23 from $24.