UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on NeoPhotonics Corp. on Mixed Q4

In a report published Friday, Deutsche Bank reiterated its Hold rating on NeoPhotonics Corp.

, but slightly lowered its price target from $5.00 to $4.50. Deutsche Bank noted, “Mixed Q4; weak Q1 guide; maintain Hold on profitability timing. Mixed results from Neo – a slight beat on the top line and pro-forma breakeven per share in Q4 [$62M revs / $0.00 pro-forma EPS] versus DB and consensus. Q4 pro-forma gross margin of 24.5% saw a meaningful decline versus 32.9% in Q3 – attributed to higher yield loss, etc. The Q1 guide [$50M - $55M revs; pro-forma loss of $0.15 to $0.25] and the FY13 guide of +8-10% YoY rev growth – were weak versus the consensus view – implying a gradual return to profitability. We remain cautious about Neo's end markets – noting QoQ volatility in optical rollouts – summing basis for our Hold rating. We lower our PT from $5 to $4.50; reflecting our updated forward estimates. “ NeoPhotonics Corp. closed on Thursday at $5.62.