Miller Tabak Reiterates Hold, $10 Target on Infinera
Miller Tabak remains Hold-rated with a $10 target price on Infinera (NASDAQ: INFN) as it sees is not yet convinced the company's product cycle ramp-up will impact revenues in a timely manner.
Miller Tabak comments, "Our decision to remain at a Hold on Infinera after the recent new product announcements reflects the uncertainty of the timing of the ramp of the key new products and the timing of the longer term achievable cost structure. While the DTN-X looks impressive, we are concerned the cost may be higher then the prior DTN offering at least initially. We also think the timing of revenue recognition for the 500G PIC offerings are difficult to pin down and have the potential for slippage over acceptance criteria."
INFN closed at $7.31 a share on Thursday.
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