Fabrinet's Upbeat Q2 & Guidance Prompts 4% Price Target Hike By This Analyst - Fabrinet (NYSE:FN)

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.
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