Finisar has catalysts to help accelerate growth, says Piper Jaffray
Piper Jaffray analyst Troy Jensen recommends investors revisit Finisar shares as he believes the optical group will likely experience accelerating growth in 2018 and believes Finisar has some company specific catalysts to help accelerate growth. The analyst believes China demand will improve by year-end and into 2018 with inventor levels being reduced and new China tenders helping grow demand. Jensen also believes Finisar will see VCSEL sales start an impressive ramp in October, coupled with initial revenues for the CFP2-ACO qualification at Cisco in the January quarter followed by ROADM line cards in the April quarter. This growth recovery coupled with lowered assumptions and valuation creates an "attractive entry point," he contends. The analyst reiterates an Overweight rating and $26 price target on the shares.