2018-04-16 08:56:54ZTCOY, NPTN   - $6.79
-0.05 (-0.73%) … 08:5604/16/18 04/1608:56 04/16/1808:56 | Commerce bans U.S. companies from selling components to ZTE, Reuters saysThe U.S. Department of Commerce has banned U.S. companies from selling components to Chinese telecom equipment maker ZTE Corp. (ZTCOY) for seven years for violating the terms of a sanctions violation case, reported Reuters. ZTE previously pleaded guilty of illegally shipping U.S. goods and technology to Iran. Optical names including NeoPhotonics (NTPN), Acacia Communications (ACIA), Oclaro (OCLR), Lumentum (LITE), Finisar (FNSR), and Fabrinet (FN) may be impacted by the news about ZTE, The Fly notes. Reference Link ZTCOY NPTN - $6.79
-0.05 (-0.73%) ACIA - $40.03
0.68 (1.73%) OCLR - $9.42
-0.04 (-0.42%) LITE - $64.30
0.05 (0.08%) FNSR - $16.28
0.09 (0.56%) FN - $33.45
-0.04 (-0.12%) | |
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- $6.79
-0.05 (-0.73%) - 03/12/18
- DADA
DA Davidson says Applied Optoelectronics best fit for Finisar amid consolidation After Lumentum (LITE) announced an agreement to acquire Oclaro (OCLR), DA Davidson analyst Mark Kelleher said he thinks the deal makes strategic sense for both companies. In terms of other possible targets in the sector, Kelleher names Applied Optoelectronics (AAOI), Acacia Communications (ACIA) and NeoPhotonics (NPTN) and calls Finisar (FNSR) a logical buyer. He added that among those, he sees Applied Optoelectronics as the best asset for Finisar to purchase. - 03/27/18
- NORL
03/27/18
NO CHANGETarget $10.5
NORL
Outperform NeoPhotonics 'should be' acquired as consolidation continues, says Northland Northland analyst Tim Savageaux noted the deal to acquire CoAdna struck by II-VI (IIVI), which he called a significant bet on a rebound in China demand and a reminder of the ongoing consolidation narrative in the 100G+ Optical group. Given that context, and noting there have been rumors that NeoPhotonics (NPTN) has been shopped for the last 6 months, he contends that NeoPhotonics "should be" acquired and "put out of their on-going misery." Savageaux has an Outperform rating on NeoPhotonics shares. - 01/29/18
- PIPR
01/29/18
DOWNGRADETarget $40
PIPR
Neutral Applied Optoelectronics downgraded to Neutral from Overweight at Piper Jaffray Piper Jaffray analyst Troy Jensen downgraded Applied Optoelectronics (AAOI) to Neutral and cut his price target for the shares to $40 from $51. The shares closed Friday up 89c to $35.99. The analyst sees risk of margin compression amid increased competition and wouldn't be surprised to see gross margins trend down throughout 2018. He also points out that optical stocks typically perform better during upgrade cycles and sentiment for the 100G cycle has likely peaked. The industry will have to wait for the 400G cycle to drive meaningful revenue growth, margin expansion and stock price appreciation, Jensen tells investors in a research note. The analyst this morning also downgraded shares of Finisar (FNSR) and NeoPhotonics (NPTN) to Neutral. - 01/29/18
- PIPR
01/29/18
DOWNGRADETarget $7
PIPR
Neutral NeoPhotonics downgraded to Neutral from Overweight at Piper Jaffray Piper Jaffray analyst Troy Jensen downgraded NeoPhotonics to Neutral while maintaining a $7 price target for the shares. The analyst sees risk from China's intention to have less dependency on North American optical component suppliers. Further, he points out that optical stocks typically perform better during upgrade cycles and that the100G cycle has likely peaked. Jensen believes the industry will have to wait for the 400G cycle to drive meaningful revenue growth, margin expansion and stock price appreciation. ACIA Acacia Communications - $40.03
0.68 (1.73%) - 03/09/18
On The Fly: Top five analyst downgrades Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Mattel (MAT) downgraded to Underweight from Equal Weight at Barclays, with analyst Felicia Hendrix saying Mattel faces downside risk from the potential Toys R Us liquidation. 2. Himax (HIMX) downgraded to Market Perform from Outperform at Northland and to Neutral from Buy at Nomura Instinet. 3. Ecopetrol (EC) downgraded to Underperform from Hold at Santander. 4. Acacia Communications (ACIA) downgraded to Underweight from Equal Weight at Morgan Stanley, with analyst Meta Marshall saying he thinks Wall Street estimates remain too high for 2019 as he does not see a rebound in Acacia's biggest markets -- namely China and datacomm systems -- being as lucrative as consensus expectations given competition and pricing pressures. 5. Match Group (MTCH) downgraded to Market Perform from Outperform at Wells Fargo, with analyst Peter Stabler saying he believes further share appreciation will need to rely "more squarely on positive revisions rather than multiple expansion." This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. - 03/09/18
- MSCO
03/09/18
DOWNGRADETarget $30
MSCO
Underweight Morgan Stanley says sell Acacia Communications with Street expectations too high As previously reported, Morgan Stanley analyst Meta Marshall downgraded Acacia Communications to Underweight, the firm's equivalent of a sell rating, from Equal Weight. He thinks Wall Street estimates remain too high for 2019 as he does not see a rebound in Acacia's biggest markets -namely China and datacomm systems - being as lucrative as consensus expectations given competition and pricing pressures, Marshall tells investors. Consensus expectations are for over 20% growth in 2019, and while this is "certainly possible," Marshall thinks growth is likely to be "much more metered" next year, he added. The analyst lowered his price target on Acacia shares to $30 from $37. - 03/09/18
- MSCO
03/09/18
DOWNGRADEMSCO
Underweight Acacia Communications downgraded to Underweight from Equal Weight at Morgan Stanley - $9.42
-0.04 (-0.42%) - 03/13/18
On The Fly: Top five analyst downgrades Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Oclaro (OCLR) downgraded to Market Perform from Strong Buy at Raymond James and to Neutral from Buy at B. Riley FBR. 2. Vocera (VCRA) downgraded to Market Perform from Outperform at Leerink with analyst David Larsen citing valuation and concerns over revenue growth expectations for the downgrade. 3. Orexigen (OREX) downgraded to Underperform from Market Perform at Wells Fargo with analyst Jim Birchenough citing the company's pending Chapter 11 bankruptcy and restructuring. 4. Piedmont Office Realty (PDM) downgraded to Sell from Hold at Stifel while Highwoods Properties (HIW) was downgraded to Hold from Buy. 5. Chegg (CHGG) downgraded to Neutral from Buy at Citi with analyst Nithin Pejaver citing valuation with the shares up 36% year-to-date. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. - 03/14/18
- UBSW
03/14/18
UPGRADETarget $10.15
UBSW
Neutral Oclaro upgraded to Neutral from Sell at UBS UBS analyst Tejas Venkatesh upgraded Oclaro (OCLR) to Neutral and raised his price target for the shares to $10.15 from $5 to reflect the takeover by Lumentum (LITE). The analyst thinks the deal could improve industry economics. - 03/20/18
- LOOP
03/20/18
NO CHANGETarget $86
LOOP
Buy Lumentum price target raised to $86 from $76 at Loop Capital Loop Capital analyst James Kisner raised his price target on Lumentum (LITE) to $86 to reflect the expected earnings accretion from the pending acquisition of Oclaro (OCLR). Kisner adds that his modeled forecasts for the combined company may also prove to be conservative based on the management's confidence that "3D sensing light sources would likely end up on the back side of phones in 2019". The analyst keeps his Buy rating on Lumentum. - 03/21/18
- DRXL
03/21/18
INITIATIONTarget $85
DRXL
Buy Drexel highlights Lumentum success at Apple when assuming with Buy rating Drexel Hamilton analyst David Williams earlier today assumed coverage of Lumentum Holdings (LITE) with a Buy rating and $85 price target. The stock in late morning trading is up 2.4% to $71.08. The analyst highlights the company's "recent success"in 3D sensing modules with Apple (AAPL). He expects a "solid ramp into multiple Android customers" in the coming quarters. Williams is also "highly encouraged" by Lumentum's recent acquisition announcement of Oclaro (OCLR). He sees benefits "well beyond" the expected cost synergies. - $64.30
0.05 (0.08%) - 03/22/18
- UBSW
03/22/18
NO CHANGETarget $80
UBSW
Buy Lumentum price target raised to $80 from $62 at UBS UBS analyst Tejas Venkatesh raised his price target for Lumentum Holdings to $80 saying strong Fundamentals should help sustain the company's "strong" growth. The analyst reiterates a Buy rating on the shares. - 03/15/18
- RILY
B. Riley FBR 'incrementally cautious' on optical component industry After spending two days at the Optical Networking and Communication Conference & Exhibition, B. Riley FBR analyst Dave Kang is "incrementally cautious" on the optical component industry. One clear conclusion from the event is that the datacom end market is as bad as feared, which is a negative for Applied Optoelectronics (AAOI) and to a lesser degree Finisar (FNSR). Further, the analyst says he continues to pick up mixed data on the Chinese market. Aside from Lumentum (LITE), most U.S.-based component vendors remain cautious and/or uncertain about growth prospects in China this year, Kang contends. - $16.28
0.09 (0.56%) - 04/05/18
- MSCO
04/05/18
UPGRADEMSCO
Overweight Finisar upgraded to Overweight from Equal Weight at Morgan Stanley - 04/05/18
04/05/18
UPGRADETarget $20
Overweight Finisar upgraded to Overweight ahead of potential catalysts at Morgan Stanley As previously reported, Morgan Stanley analyst Meta Marshall upgraded Finisar to Overweight from Equal Weight, stating that while he believes the datacomm components sector faces meaningful challenges, he thinks that the valuation penalty has become too large on the stock. Potential catalysts in the second half of this year and into 2019 include completion of the new CEO strategic review in June, introductions of cheaper CWDM4 modules, and incremental news around progress on the Sherman VCSEL facility, said Marshall. He trimmed his price target on Finisar shares to $20 from $21. - 04/05/18
- WBLR
04/05/18
NO CHANGEWBLR
Outperform Finisar shares oversold at current levels, says William Blair William Blair analyst Dmitry Netis points out that shares of Finisar have lost nearly 30% of their value since the March 8 earnings print and are down nearly 60% from highs in February 2017. The analyst sees "several reasons for investors to bottom-fish their entry into the stock." The risk/reward is "highly asymmetric" with the shares trading at book value, Netis tells investors in a research note titled "Oversold, Trading at Book Value Creates a Buying Opportunity; LBO, M&A, or Organic Reorg Are Next Catalysts." He finds it highly likely that the new CEO will announce an organic restructuring plan, which he views as a potential catalyst along with a potential acquisition or leveraged buyout. Netis keeps an Outperform rating on Finisar. - 04/11/18
- GSCO
04/11/18
NO CHANGETarget $15
GSCO
Sell Finisar fundamentals remain challenged, says Goldman Sachs Goldman Sachs analyst Doug Clark believes Finisar fundamentals remain challenged and continue to see downside risk to Street estimates. The analyst reiterates a Sell rating on the shares, with a $15 price target, as he believes Datacom competition and price pressure will continue to weigh on revenues, margins, and profits. Over the next few months, Clark expects peer Q1 earnings results to reflect broader weakness in both Telecom and Datacom component end markets. Further, the analyst also notes that revenue growth remains the more prominent lever for margins, with Finisar exhibiting over a 70% correlation between revenues and gross margins. - $33.45
-0.04 (-0.12%) - 01/24/18
- STFL
Stifel tempers optical expectations, lowers targets across space Stifel analyst Patrick Newton said he believes optical trends have modestly decelerated in both China and the broader market based on his own checks and public commentary from multiple vendors in the optical supply chain. He is also "aggressively moderating" his 3D sensing expectations in the March quarter, pointing to too many signs of tepid iPhone X sell through, Newton tells investors. Given this, he lowered his price target on Lumentum (LITE) to $66 from $75, though he keeps a Buy rating, citing his constructive view on 3D sensing in the second half of the year. In separate notes this morning, Newton also said he is taking a more conservative view on optical and trimmed his price target on Finisar (FNSR) to $24 from $26, lowered his price target on Fabrinet (FN) to $35 from $40 and cut his target on Oclaro (OCLR) to $8.50 from $10. - 11/07/17
- NEED
11/07/17
NO CHANGETarget $45
NEED
Strong Buy Fabrinet price target lowered to $45 from $60 at Needham Needham analyst Alex Henderson lowered his price target on Fabrinet to $45, citing the company's soft outlook for Q4. Henderson says most of the industry offered weak guidance for next quarter due to slowing China demand, adding that the company's cited telecom issues are not surprising. Looking at FY18, the analyst expects the company to post modest gains off the Q4 base if China remains flat, keeping his Strong Buy rating. - 11/07/17
- JPMS
11/07/17
DOWNGRADETarget $42
JPMS
Neutral Fabrinet downgraded to Neutral from Overweight at JPMorgan JPMorgan analyst Paul Coster downgraded Fabrinet to Neutral and cut his price target for the shares to $42 from $54. The company's Q2 guidance came in well below expectations on soft end market demand in China, Coster tells investors in a research note. He sees a lack of near-term catalysts and believes visibility is low. - 11/02/17
- STFL
Facebook capex guidance positive for optical component suppliers, says Stifel Stifel analyst Patrick Newton said Facebook's (FB) guidance for capital expenditures to double from a targeted $7B in 2017 to $14B in 2018 as a positive data point for Finisar (FNSR), Lumentum (LITE), Oclaro (OCLR), Fabrinet (FN), Infinera (INFN) and Ciena (CIEN). He believes Facebook's guidance reaffirms that cloud infrastructure spending is a multi-year trend and the weakness currently being experienced by optical component suppliers represents a near-term issue around timing of expenditures. |