Piper Jaffray Reiterates Buy on Finisar, Reduces PT to $22

Piper Jaffray reiterated its Buy rating on Finisar FNSR. At the same time, Piper Jaffray lowered its price target on the company's stock from $31 to $22 following a downward revision of its earnings per share estimates for the next two years. In a research report published today, Piper Jaffray states, "Despite the recent setback, we continue to believe the optical space is poised to benefit from a pending upgrade cycle and are advising investors to be buyers on the pullback. Finisar should see incremental revenues over the next few quarters as new products and vendor qualifications generate sales along with an eventual recovery in Chinese demand. We are reiterating our Overweight rating on shares of FNSR but lowering our PT to $22 from $31." On Wednesday, Finisar lost 6.68% of its value to close the day at $17.73. Its shares are having even worst time in today's pre-market trading, however, as Finisar faltered after its shares plunged 16.47% to $14.81.