Needham & Company Remains Bullish on NeoPhotonics (NPTN) Following Boston NDR

Needham & Company maintained a Buy rating and $17.00 price target on NeoPhotonics (NYSE: NPTN) following Boston NDR. Much of the Neo presentation centered around addressing investor’s concerns about the visibility of sustained demand out of China. The company cited the open RFP activities in China and the clarity of the Chinese government broadband buildout programs as key evidence of the continuing demand out of China.

Analyst Alex Henderson commented, "Neo was up 10% prior to the Huawei subpoena news. It closed down 5%. We think NPTN was a relative bargain before the sell-off and an even bigger one after what we see as a gross over-reaction. At just 0.7x EV/Sales and 8.8x EV/E, we believe these shares could quite possibly more than double over the next several years. Neo is seeing sold-out conditions across the bulk of its product lines and should benefit from a multi-year optical buildout in China, strong metro core rollouts globally and a strong Data Comm cycle. We aggressive reiterate our Buy and $17 PT"

For an analyst ratings summary and ratings history on NeoPhotonics click here. For more ratings news on NeoPhotonics click here.

Shares of NeoPhotonics closed at $9.14 yesterday.

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