UPDATE: Deutsche Bank Reiterates On Fabrinet On Roughly In-Line Results

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, and raised the price target from $18.00 to $22.00. In the report, Deutsche Bank noted, “Demand remains stable, but sluggish. FN reported better-than-expected F3Q-14 sales and in-line EPS, with improvements seen in both segments. In telecom, new advanced components and modules continue to drive growth, while in networking 10Gig and 40Gig products are seeing healthy growth. GMs were impacted in the Q by a customer reserve, but are expected to return to 11% ranges in C2H-14. "We have kept our sales estimates unchanged but trimmed EPS on the lower margins We expect shares to trade in line with other small cap EMS peers like Plexus and have raised our PT to $22 from $18, which is based on 14x our FY- 15E EPS. Trading near these levels, we rate FN a Hold.” Fabrinet closed on Monday at $22.06.