- Needham analyst Alex Henderson reiterated a Buy on Fabrinet FN and raised the price target from $130 to $135 (15.7% upside).
- He acknowledged Fabrinet's strong quarter, strong guide, higher margin expectations, and discussions over strong ongoing demand and gradually improving supply chain parts availability and pricing in a note titled "FN: Solid Print and Guide Supported By Large Customer Backlogs Improving Supply."
- The company also bought back a large slug of stock and upped its buyback authorization, Henderson noted.
- The new production facility, which adds 50% to Fabrinet's footprint, is now open, and the first customer is installing equipment, he said.
- FN expects to generate revenue from the plant in the current quarter and has two more customers coming in CY4Q, he noted.
- With $0.16 EPS upside to the quarter and upside to the FY1Q guide of $0.23, he raised estimates for FY23 and FY24.
- Price Action: FN shares traded higher by 15.82% at $116.64 on the last check Tuesday.
- Photo Via Company
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