UPDATE: Stifel Nicolaus Drops PT to $21 on Oplink Communications; End Demand Challenges

Stifel Nicolaus cuts its price target form $23 to $24 on Oplink Communication OPLK as it reiterates its Buy rating on shares. Stifel Nicolaus comments, "Oplink provided F3Q12 (March) revenue and pro forma EPS guidance that was below our and consensus expectations, calling for flat sales q/q at the mid-point. When normalizing for the revenue pull-in, sales would have been guided to increase in a range of 3%-13% q/q, bracketing our and consensus expectations. Although slightly moderating our estimates to better incorporate the challenging end demand environment, we positively view results and guidance and believe end demand is beginning to moderately trend higher as seen through order patterns that are starting to improve (a book-to-bill of greater than 1.0x) and guidance (normalizing for the pull-in)." OPLK closed at $15.18 on Thursday.