Needham & Company Downgrades Infinera Corp. (INFN) to Hold

Needham & Company downgraded Infinera Corp. (NASDAQ: INFN) from Buy to Hold.

Analyst Alex Henderson commented, "INFN is up 60% during CY14 (vs S&P 500's ~12%) and has doubled from its mid-1Q CY14 low. It is within 10% of our prior $16 PT. We see a uniformly positive view on the Street on INFN. With the sharp rise in shares, INFN is trading at a rich 19x CY16 estimates. We expect a solid 4Q and likely a normal seasonal CY1Q guide. We are impressed with both INFN's CloudExpress product and its core technology. However, INFN will not likely win meaningful market share in the metro market until late CY16 and we think this will be the focus of spending in CY15. We do not see another 20%+ move in shares at this point, thus we downgrade to Hold from our longstanding Buy."

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

Shares of Infinera Corp. closed at $14.32 yesterday.

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