UPDATE: Citi Color on Finisar PT Decrease

), is providing some color on the stock. “Despite 16% after-hours downdraft that put FNSR shares 68% below mid-Feb 52 week high, we maintain our Hold/Speculative rating on FNSR,” Citi writes. “Our Street low FY12 (Apr 12) estimate is reduced significantly due to weak outlook on both revenues/GM% and higher op ex; we expect significant reductions to consensus also. “We're incrementally more interested at these levels, valuation, and certainly reset expectations, but with mgt visibility uncertain, a contraction in high-margin ROADM component, lingering questions regarding Ignis acquisition, and uncertain ramp on TXFP, we believe shares are unlikely to see significant gains in near/intermediate term. We're not recommending Sell given valuation (~10X our NTM EPS), constructive sector view, & belief that FNSR will return to q/q growth at some point in next 2-3 qtrs.” Finisar closed Wednesday at $17.73.