DA Davidson analyst Mark Kelleher lowered his price target on Oclaro to $9 citing the headwinds faced by the company over the past few quarters, namely the weakening market in China as well as a transition within the cloud market from CFP transceivers to QSFP28 transceivers. While the company has weathered those headwinds to produce an in-line Q2 print, the analyst contends, weakness for China and datacenter divisions is expected to persist into next quarter. Longer term, Kelleher keeps his Buy rating on Oclaro, stating that the CFP transition has run its course, placing the company on track for renewed growth.