UPDATE: Jefferies Upgrades Finisar After Data Center Checks

In a report published Tuesday, Jefferies analyst James Kisner upgraded the rating on

from Underperform to Hold, and raised the price target from $11.50 to $22.50. In the report, Jefferies noted, “We're upgrading FNSR from Underperform to Hold driven by 2 key factors: 1) our checks suggest that Data Center spending on 10G/40G optics is likely to remain quite strong in the near- to medium-term; 2) our checks also suggest a significant commercial impact ramp of silicon photonics is likely at least 6 months away. We continue to believe silicon photonics presents significant pricing and market share risk for FNSR.” Finisar Corporation closed on Monday at $23.54.