Needham & Company Raises Price Target on Fabrinet (FN) to $32 Post 4Q Beat and Raise

Needham & Company reiterated a Buy rating on Fabrinet (NYSE: FN), and raised the price target to $32.00 (from $28.00), following the company's 4Q earnings report. Overall Revenues came in up 24% as Reported and 29% excluding One-Time Consignment Revenues in the year-ago period. For the March quarter, Fabrinet offered up 4-5% resulting in guidance 12% above the Street forecast. This equates to a 27-30% growth rate.

Analyst Alex Henderson commented, "Fabrinet easily beat CY4Q estimates with a 24% as Reported growth rate and adjusting out a quasi one-time consignment Revenue in the year-ago apples-to-apples growth of 29%. We find these to be impressive results. For the March quarter, Fabrinet offered up 4-5% resulting in guidance 12% above the Street forecast. This equates to a 27-30% growth rate. Fabrinet's 100G business grew 3x in the quarter. The December quarter was driven by Data Comm up 46%, but Fabrinet expects growth to pivot to Telecom in CY16 on Metro, ROADMs and coherent product growth."

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

Shares of Fabrinet closed at $25.09 yesterday.

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