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UPDATE: Stifel Nicolaus Raises PT on Finisar Following F4Q13 Results

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In a report published Thursday, Stifel Nicolaus analyst Patrick Newton reiterated a Buy rating on Finisar (NASDAQ: FNSR), and raised the price target from $18.00 to $20.00.

In the report, Stifel Nicolaus noted, “Finisar's F4Q13 (April) results were above consensus expectations, with slight revenue upside and a solid pro forma EPS beat on better than expected gross and operating margin. Surprisingly strong datacom revenue (record levels) helped offset soft telecom sales (lowest level in three years) that experienced weak demand trends across most product lines, with flat q/q WSS/ROADM revenue a positive outlier. Finisar guided to above consensus F1Q14 (July) revenue, margin, and pro forma EPS. Revenue is expected to increase 4% at the mid-point (6% when normalizing for a divestiture) driven by datacom, while telecom revenue is expected to grow to a lesser extent q/q. We were impressed by upside to results on a revenue and margin basis despite telecom trends clearly pressured in the quarter. We positively viewed management commentary on continuing secular datacom trends, the potential for a 2H rebound in telecom, targeted FY14 revenue growth of 10%-15% (13%-18% when normalizing for a divestiture). Accordingly, we reiterate our Buy and are increasing our target price to $20.”

Finisar closed on Wednesday at $14.52.

Latest Ratings for FNSR

DateFirmActionFromTo
Sep 2019MKM PartnersMaintainsNeutral
Dec 2018JefferiesDowngradesBuyHold
Dec 2018MKM PartnersDowngradesBuyNeutral

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