Market Overview

Goldman Removes Infinera From 'Sell' List, Upgrades To Neutral

Share:

Infinera Corp. (NASDAQ: INFN) shares are down 17 percent year-to-date. Goldman Sachs’ Doug Clark upgraded the rating for the company from Sell to Neutral, citing the recent pullback in shares. The price target has been maintained at $16.

Limited Downside To Valuation

Since being added the Sell list on September 7, 2015, Infinera’s shares have declined 28 percent, as compared to a 1 percent decline in the Russell 2000.

“Our Sell thesis was based on our view that Infinera’s premium valuation was not reflective of mid-term risks such a choppy end market and rising competition,” analyst Doug Clark wrote. He added that there was now limited downside risk, with shares trading broadly in-line with historical valuations.

Limited Downside To Estimates

The company’s addressable market has expanded 100 percent, with M&A and new product launches. Clark commented that the company was getting “closer to realizing the synergies and market share gains of these efforts.”

The analyst expressed optimism regarding Infinera achieving gross margin expansion, backed by a favorable mix shift to high margin line card sales and Instant Bandwidth.

Latest Ratings for INFN

DateFirmActionFromTo
Mar 2019MKM PartnersUpgradesNeutralBuy
Feb 2019MKM PartnersUpgradesSellNeutral
Nov 2018Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for INFN
View the Latest Analyst Ratings

Posted-In: Doug Clark Goldman SachsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (INFN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
PEPMacquarieMaintains138.0
POLBuckinghamMaintains36.0
BKBuckinghamMaintains53.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Illumina Announces $100 Million Investment In Venture Fund To 'Improve Human Health By Unlocking The Power Of The Genome'

Banking On Good News For The Spain ETF