UPDATE: Piper Jaffray Reduces PT to $16 on Conservative Growth Expectations

Piper Jaffray reiterates its Overweight rating on Fabrinet

and reduces its price target from $20 to $16. Piper Jaffray says, "After suffering a one-two punch from the Thailand floods and recently anemic industry growth, we believe the current valuation on FN shares represents a favorable risk/reward for patient investors. Fabrinet currently trades at a 30% discount to its optical peer group despite lower revenue and earnings volatility. While we are lowering expectations, we are reiterating our Overweight rating as we believe most of the market concerns and slower growth assumptions are already priced into FN valuation. We are also lowering our price target to $16 from $20 due to lower revenue and EPS assumptions going forward." FN closed at 12.56.