Auriga Maintains Hold On Finisar

Auriga has published a research report on Finisar Corporation

after the company pre-announced an upside to its 2Q results. In the report, Auriga writes "We downgraded FNSR in early September owing to a confluence of fears surrounding inventory buildup at CSCO as well as a potential slowing of capex in the carrier community. Amazingly, despite both of these events having come to pass, FNSR has managed to beat and raise two quarters in a row. In hindsight, our downgrade was premature as we did not credit the company with the earnings power that its industry leading ROADM position has afforded it. Thus, FNSR has been able to post good results despite the backdrop deteriorating because of its superior product mix and superior technology. However, given the highly cyclical nature of its business, we are more inclined to wait for an earnings hiccup instead of chasing the stock after this recent run." Auriga maintains its Hold rating and $16 price target. Finisar Corporation closed yesterday at $17.93.