Finisar Corporation’s (FNSR) Coverage Initiated With Buy Rating

Analyst Chandan Sarkar at Auriga has initiated coverage of Finisar Corporation (NASDAQ: FNSR) with Buy rating. The price target for Finisar Corporation stock has been set at $19.

Compared with Oclaro, Inc. (NASDAQ: OCLR) and JDS Uniphase Corporatio, Auriga believes Finisar is providing greater investment leverage as the company pertains to datacom, with less exposure to telecom. The company also carries greater customer concentration risk.

The company has $160 million in debt, which consists of convertible notes and bank debt. Auriga believes that Finisar’s acquisition of Optimum in second-quarter of fiscal 2009 provides the company with greater scale and product diversity.