Stifel analyst Patrick Newton raised Oclaro's price target to $12 from $10 telling investors the China slowdown is now reflected in consensus estimates. Additionally, Newton has increased confidence in the in the staying power of CFP2-ACO and expects a substantial ramp in QSFP28 sales with demand likely to outpace capacity additions into 2018. The analyst views Oclaro as a logical M&A target for larger component vendors Finisar (FNSR) and Lumentum (LITE) given its strong defensible product segments and its complimentary scale in key product lines across both telecom and datacom markets and in technology and IP. Newton rates Oclaro shares a Buy.