UPDATE: Stifel Reiterates Buy Rating, Raises PT on Finisar Corporation Following F1Q14 Results Report

In a report published Friday, Stifel analyst Patrick Newton reiterated a Buy rating on

, and raised the price target from $27.00 to $31.00. In the report, Stifel noted, “Finisar's F1Q14 (July) results provided little surprise given the company's positive pre-announcement on August 6th with revenue and pro forma earnings matching expectations. Guidance impressed with Finisar targeting well above consensus F2Q14 (October) revenue and pro forma EPS. Revenue is targeted to increase approximately 7% q/q and 23% y/y at the mid-point, off of record levels, once again largely driven by datacom although augmented by the expectation of improving trends in telecom. Management continues to see several drivers of growth for datacom, discussed signs of improving telecom order trends, and appears optimistic on near-to-intermediate business trends. We continue to positively view shares given: (1) secular datacom trends are solid and appear sustainable, (2) our expectation telecom revenue will eventually rebound from depressed levels, (3) solid China exposure, and (4) operating leverage potential. Accordingly, we reiterate our Buy rating and are increasing our target price to $31.” Finisar Corporation closed on Thursday at $22.84.