2018-12-09 12:37:13CIEN   - $31.30
-0.95 (-2.95%) , INFN - $4.38
-0.21 (-4.58%) … 12:3712/09/18 12/0912:37 12/09/1812:37 | China urges Canada to free Huawei CFO, Reuters reportsChina warned Canada that there would be severe consequences if it did not immediately release Huawei Technologies chief financial officer, calling the case "extremely nasty," according to Reuters. Meng Wanzhou was arrested in Canada on December 1 and faces extradition to the U.S., which alleges that she covered up her company's links to a firm that tried to sell equipment to Iran despite sanctions, the publication notes. According to reports, Huawei accounted for nearly 17% of Lumentum's (LITE) sales in FY17, about 15% of FY17 sales for Oclaro (OCLR) and 11% of FY17 sales for Finisar (FNSR). The company competes in China with ZTE (ZTCOY), Infinera (INFN) and Ciena (CIEN). Reference Link CIEN - $31.30
-0.95 (-2.95%) INFN - $4.38
-0.21 (-4.58%) ZTCOY - $0.00
(0.00%) FNSR - $22.49
-0.53 (-2.30%) OCLR - $8.27
-0.165 (-1.96%) LITE - $41.92
-2.81 (-6.28%) | |
|---|
- $31.30
-0.95 (-2.95%) - 10/03/18
- RSBL
10/03/18
NO CHANGERSBL
Neutral Rosenblatt raises Ciena target, lowers Infinera's on expected CenturyLink shift Rosenblatt analyst Ryan Koontz said he now expects Ciena (CIEN) to secure the lead optical supplier contract at CenturyLink (CTL) that he and many others had previously viewed as incumbent Infinera's (INFN) to lose. Koontz, who estimates the value of the contract for Ciena at $150M-$200M per year, modestly increased his 2019 revenue and earnings estimates and raised his price target to $33 from $31, though keeps a Neutral rating on the stock given the shares' recent strength. He cut his 2019 stand-alone Infinera revenue and earnings estimates and lowered his price target on the shares to $9 from $11.50, but maintains a Buy rating given the "precipitous" recent decline in the stock. - 10/22/18
- STFL
10/22/18
INITIATIONTarget $35
STFL
Buy Ciena resumed with a Buy at Stifel Stifel analyst John Marchetti resumed Ciena with a Buy rating and a price target of $35, citing its position as a "leading vendor of optical networking systems servicing long-haul, metro, and datacenter interconnect communications networks". The analyst expects the company to return to "market growth driven by bandwidth demand across multiple target market segments" along with more specific growth drivers like opportunities around India market, DCI share gains, and customer and revenue diversification efforts that should yield "operating margin growth and drive multiple expansion." - 11/20/18
- NEED
11/20/18
DOWNGRADENEED
Hold Ciena downgraded to Hold from Buy at Needham Needham analyst Alex Henderson downgraded Ciena to Hold, saying that after a "nice run" supported by reduced competition, strong growth in India, and key contract wins from NTT, it was time to move to the sidelines. The analyst believes that the stock now reflects "a lot of good news" and warns that the management may guide cautiously for 2019 based on tougher comps and expectations of the competition launching a 400G-600G product. Henderson also sees Ciena's valuation at 18-times enterprise value to expected forward EBITDA multiple as "non inexpensive". - 12/06/18
- JPMS
JPMorgan adds Cisco to Analyst Focus List, removes Ciena JPMorgan analyst Samik Chatterjee removed Ciena (CIEN) from his firm's Analyst Focus List following the year-to-date share price performance of 48%. The analyst, however, keeps an Overweight rating on the shares as he still sees 24% upside from current levels. Heading into 2019, he added Overweight-rated Cisco Systems (CSCO) to the Analyst Focus List as a value idea. Cisco is now his top pick within his Networking Equipment/IT Hardware coverage given its "accelerating" product momentum, secular transformation to software and recurring revenue, and potential for "greater upside from re-rating of the shares." - $4.38
-0.21 (-4.58%) - 11/09/18
- JEFF
11/09/18
UPGRADETarget $5
JEFF
Hold Infinera upgraded to Hold from Underperform at Jefferies Jefferies analyst George Notter upgraded Infinera to Hold while lowering his price target for the shares to $5 from $7.75. The analyst cites valuation for the upgrade following this week's post-earnings selloff. - 11/13/18
On The Fly: Top five analyst downgrades Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Lumentum (LITE) downgraded to Neutral from Overweight at JPMorgan with analyst Samik Chatterjee saying yesterday's negative pronouncement underscored the challenges likely to be faced by Apple (AAPL) supply chain companies in delivering to investor expectations as Apple continues to prioritize its premium pricing strategy on iPhones relative to volumes. 2. Best Buy (BBY) downgraded to Neutral from Buy at BofA/Merrill with analyst Curtis Nagle citing expectations for slowing industry growth, difficult comps in key products and cost inflation. 3. Perrigo (PRGO) downgraded to Hold from Buy at Berenberg with analyst Patrick Trucchio saying although the key reason to own Perrigo shares remains intact, namely the U.S. government's push to shift more products from prescription to nonprescription, "too much uncertainty in generics has placed us on the sidelines." 4. Sabra Health Care (SBRA) downgraded to Neutral from Buy at Mizuho with analyst Richard Anderson saying he wants to a take a "pause" until the earnings reset from the "surprise news" of Senior Care stopping rent payments since May becomes better understood. 5. Infinera (INFN) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Meta Marshall saying she sees "no reason to race in" until there are signs that the revenue base has stabilized. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. - 11/13/18
- MSCO
11/13/18
DOWNGRADETarget $6
MSCO
Equal Weight Infinera downgraded to Equal Weight after analyst day delay at Morgan Stanley As previously reported, Morgan Stanley analyst Meta Marshall downgraded Infinera to Equal Weight from Overweight as she sees "no reason to race in" until there are signs that the revenue base has stabilized. The company's recent earnings report revealed that the Coriant business is in worse condition than expected, noted Marshall, who believes the company's postponement of its analyst day leaves few opportunities for a positive rerating in the next 6 months. Marshall lowered her price target on Infinera shares to $6.00 from $9.50 after lowering her 2021 EPS estimate to 40c-60c from the 75c-$1.00 she'd estimated earlier. - 11/13/18
- MSCO
11/13/18
DOWNGRADETarget $6
MSCO
Equal Weight Infinera downgraded to Equal Weight from Overweight at Morgan Stanley Morgan Stanley analyst Meta Marshall downgraded Infinera to Equal Weight and lowered his price target for the shares to $6 from $9.50. - $0.00
(0.00%) - 08/16/18
- RILY
08/16/18
NO CHANGETarget $50
RILY
Buy Fabrinet price target raised to $50 from $40 at B. Riley FBR B. Riley FBR analyst Dave Kang maintained a Buy rating on Fabrinet (FN) and raised his price target for shares to $50 from $40 ahead of the company's Q4 earnings on August 20, which he expects will be above consensus, as the latest industry data indicates that optical demand continues to improve after a 2017 correction. Kang says he remains a buyer into the print, and that Fabrinet should get a boost with the ban on ZTE (ZTCOY) lifted. - 08/31/18
- ROTH
08/31/18
NO CHANGETarget $7
ROTH
Buy Roth Capital encouraged by good reviews for Pixelworks-powered Axon 9 Roth Capital analyst Suji Desilva said he was encouraged by positive reviews for ZTE's (ZTCOY) Axon 9 smartphone, which uses Pixelworks' (PXLW) Iris mobile processor. Of note, reviews have emphasized the high aspect ratio OLED display and viewing quality, affirming his constructive thesis on the value of Pixelworks' core video technology, Desilva tells investors. He raised his price target on Pixelworks shares to $7 from $6 and maintains a Buy rating on the stock. - 08/23/18
- PIPR
08/23/18
UPGRADETarget $46
PIPR
Overweight Acacia Communications upgraded to Overweight from Neutral at Piper Jaffray Piper Jaffray analyst Troy Jensen upgraded Acacia Communications (ACIA) to Overweight and raised his price target for the shares to $46 from $38. Demand for optical is improving and Acacia is the best way to play the upcoming 400G cycle, Jensen tells investors in a research note. He believes the company's revenue growth will accelerate amid easy comps, improving demand from ZTE (ZTCOY), recent design wins and upcoming product cycles. Acacia can return to profitability levels seen before the China/ZTE slowdown, the analyst contends. - 08/23/18
- PIPR
08/23/18
UPGRADETarget $26
PIPR
Overweight Finisar upgraded to Overweight from Neutral at Piper Jaffray Piper Jaffray analyst Troy Jensen upgraded Finisar (FNSR) to Overweight from Neutral and raised his price target for the shares to $26 from $18. The shares closed yesterday down 95c, of 5%, to $18.65. China demand is returning via Huawei and ZTE (ZTCOY), Finisar is facing easy comps following five quarters of depressed demand and the upcoming 400G cycle should provide a tailwind in 2019, Jensen tells investors in a research note. On top of improving optical industry dynamics, the analyst believes Finisar's new CEO will improve the cost structure and execution at the company and drive better profitability. Now is a "great time" to revisit owning the shares, Jensen contends. The analyst this morning also upgraded Acacia Communications (ACIA) to Overweight from Neutral. - $22.49
-0.53 (-2.30%) - 12/06/18
- MKMP
12/06/18
DOWNGRADEMKMP
Neutral Finisar downgraded to Neutral from Buy at MKM Partners MKM Partners analyst Michael Genovese downgraded Finisar (FNSR) to Neutral from Buy with a price target of $24 after its merger agreement with II-VI (IIVI) announced last month. The analyst further notes that Q4 is trending well for the optical components group which also includes Lumentum (LITE) and Oclaro (OCLR), but believes that the guidance for March will be "sequentially down due to annual price negotiations and Chinese New Year". - 12/06/18
- MKMP
12/06/18
DOWNGRADEMKMP
Neutral Finisar downgraded to Neutral from Buy at MKM Partners - 11/13/18
- LOOP
11/13/18
NO CHANGETarget $43
LOOP
Buy II-VI price target lowered to $43 from $55 at Loop Capital Loop Capital analyst James Kisner lowered his price target on II-VI (IIVI) to $43, saying it is "prudent" to reduce his estimates for 3D sensing after the negative pre-announcement by Lumentum (LITE). The analyst notes that the company's Laser Solutions business may also slow in FY19, lowering his EPS forecast for next year to $2.29 from $2.53. Separately, Kisner is also positive on II-VI's proposed Finisar (FNSR) merger, stating that even under the conservative projections for the latter, the transaction is "likely very accretive". - 12/06/18
- JEFF
12/06/18
DOWNGRADETarget $23
JEFF
Hold Finisar downgraded to Hold from Buy at Jefferies Jefferies analyst George Notter downgraded Finisar (FNSR) to Hold saying competing takeover bids to II-VI's (IIVI) are unlikely. The analyst views the deal price as "appropriate." - $8.27
-0.165 (-1.96%) - 11/12/18
- CHLM
11/12/18
DOWNGRADETarget $24
CHLM
Hold Finisar downgraded to Hold from Buy at Craig-Hallum Craig-Hallum analyst Richard Shannon downgraded Finisar (FNSR) to Hold from Buy and raised his price target on the shares to $24 from $23. The analyst believes that II-VI's (IIVI) $26/share cash and stock offer for the company, which was a 38% premium to the close on November 8th, is more than a fair deal, given that Lumentum's (LITE) offer premium for Oclaro (OCLR) earlier this year was 27%. Shannon has some doubts about whether this deal will close given the Lumentum/Oclaro deal has not yet closed and the intensifying political standoff between the US and China, but also admits II-VI and Finisar would not have agreed to this deal if there was not a good chance of closing. - 09/05/18
- NEED
09/05/18
NO CHANGETarget $90
NEED
Strong Buy Lumentum price target raised to $90 from $80 at Needham Needham analyst Alex Henderson raised his price target on Lumentum (LITE) to $90 and kept his Strong Buy rating, saying the company is the "strongest" name in the Optical space even though its valuation is the "lowest". Henderson notes that demand in Optical market is accelerating and 3D "looks set to blossom", even as the stock trades at "just 11.5-times" enterprise value to EBITDA. The analyst further states that Lumentum's competition in 3D is "slow to ramp", adding that he anticipates the approved Oclaro (OCLR) acquisition this year to yield up to $1 in earnings per share. - 11/13/18
- PIPR
11/13/18
NO CHANGETarget $72
PIPR
Overweight Piper remains buyer of Lumentum following yesterday's 33% decline Piper Jaffray analyst Troy Jensen remains a buyer of Lumentum (LITE) shares following yesterday's 33% decline. The reduced forecast at Apple (AAPL) has nothing to do with lost share for Lumentum, rather it is more indicative of lower sales forecasts at this key account, Jensen tells investors in a research note. The analyst continues to believe the 3D sensing market "will grow handsomely" with Apple and he notes that Android phones are just beginning their adoption. He also sees a pending opportunity for world facing 3D sensing applications. Further, the core telco optics market is in the early innings of an upgrade cycle, which should provide a "nice tailwind" for Lumentum, says Jensen. He also thinks the pending acquisition of Oclaro (OCLR) could also be a catalyst for the shares given the earnings accretion once the merger gets approval. The analyst lowered his price target for Lumentum to $72 from $85 and reiterates an Overweight rating on the name. - $41.92
-2.81 (-6.28%) - 11/14/18
- DADA
11/14/18
NO CHANGETarget $72
DADA
Neutral Qorvo price target lowered to $72 from $81 at DA Davidson DA Davidson analyst Thomas Diffely lowered his price target on Qorvo (QRVO) to $72 and kept his Neutral rating after the company cut its Q3 earnings guidance to reflect the expectations of a weaker high-end smartphone demand. The analyst believes that the "softer than expected" launch of the new iPhones by Apple (AAPL) has " triggered a rapid change in order flow over the past couple of weeks" and anticipates similar announcements from other Apple suppliers to track reduced guidance by Qorvo and Lumentum (LITE). - 11/28/18
- LOOP
11/28/18
NO CHANGETarget $56
LOOP
Buy Lumentum price target raised to $56 from $47 at Loop Capital Loop Capital analyst James Kisner raised his price target on Lumentum (LITE) to $56 and kept his Buy rating, opting for a "long view" on the stock following its November 12th pre-announcement regarding order cuts by Apple (AAPL). The analyst believes that the sell-off in Lumentum stock has given it a "very compelling" valuation and sees his new FY20 EPS view as "conservative and very achievable". Kisner further relates that his conversations with the management indicate that the company "has not yet received an updated forecast from Apple", with some possibility that "this information simply represents 'reverberations' of the same prior cuts, just for different parts of the supply chain." - 11/26/18
- LOOP
11/26/18
NO CHANGETarget $225
LOOP
Buy Apple price target lowered to $225 from $259 at Loop Capital Loop Capital analyst Ananda Baruah lowered his price target on Apple (AAPL) to $225 and also lowered his Q4 iPhone shipment target to 75M from 80M and 2019 target to 204M from 227M. The analyst cites the latest guidance revisions from Lumentum (LITE) along with reports that Apple's iPhone assembler Foxconn is lowering its output expectations. Baruah keeps his Buy rating on Apple, saying that it remains an "attractive long-term investment" given its median multiple of 15-times earnings, but also warns that the company could announce its guidance update as soon as today after meeting with Foxconn, which may prompt him to make additional estimate reductions. |