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Fly News Breaks for February 28, 2020
Feb 28, 2020 | 09:00 EDT
B. Riley FBR analyst Davig Kang upgraded NeoPhotonics to Buy from Neutral with a price target of $9.00, up from $6.70. The stock is down 30% year-to-date, which factors in most of the risk factors, Kang tells investors in a research note. Further, the analyst believes Huawei will continue to maintain high levels of inventories as long as the relationship between China and the U.S. remains uncertain. He believes NeoPhotonics is well positioned to capitalize on the emerging 400G cycle and notes the company's profitability has improved significantly from 2018. He upgrades the shares following NeoPhotonics' "surprisingly better than expected" outlook.