UPDATE: Goldman Sachs Upgrades Infinera Corporation to Neutral; DTN-X to Reinstate Growth Plan

Goldman Sachs upgraded Infinera Corporation INFN from Sell to Neutral and raised the price target from $5.65 to $7.20. The company was removed from Goldman Sachs' Americas Sell List. Goldman Sachs analyst Simona Jankowski noted, "We upgrade Infinera to Neutral from Sell, as we believe the company is back on a growth path following a better-than-expected launch of the 100G DTN-X optical transport product in 3Q 2012, with 22 announced customers and more than 30% share in the second quarter of shipments. In addition to an improved top-line trajectory, we believe the current quarter will mark a bottom in the company's gross margins, given its “razor + blades” model characterized by higher-margin blade shipments following the initial install of lower-margin chassis." Infinera Corporation closed at $7.02 on Monday.