Finisar (FNSR): Needham Raises EPS 42% For '17

Needham & Company analyst, Alex Henderson, reiterated his Buy rating on shares of Finisar (NASDAQ: FNSR) and raised the price target to $32 from $28 after Finisar's stars aligned with the Super Cycle in the July Q and October guide. CY17 EPS goes to $1.86 from $1.31 and he introduced a CY18 revenue estimate of $1,753MM and EPS of $2.13.

The slower ramp in 25G/100G due to the lack of NIC cards from Intel has bought Finisar time to ramp its sold-out 100G Data Comm products while the 10G/40G holds in. This is driving better than expected volume and a positive mix shift which is driving up GMs ~300 BPs ahead of forecast in the just posted quarter and guide. The guide for Operating Margins of 14.3-15.3% is as a result 300-400 BPs above forecast and trend suggests further improvement.

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

Shares of Finisar closed at $23.23 yesterday.

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