Fabrinet (FN) PT Raised to $135 at Needham & Company Following 'Solid' EPS

Needham & Company analyst Alex Henderson raised the price target on Fabrinet (NYSE: FN) to $135.00 (from $130.00) while maintaining a Buy rating following a "solid" earnings print and guidance supported by large customer backlogs improving supply.

The analyst commented, "How does that expression go? Nothing but Fab-NET. FN posted a strong quarter, offered a strong guide, stated it expects higher GMs and Operating Margins over time than previously guided, and talked about strong on-going demand and gradually improving supply chain parts availability and pricing. They also bought back a large slug of stock and upped their buyback authorization. The new production facility, which adds 50% to Fabrinet's footprint is now open and the first customer is installing equipment. FN expects to generate Revenue from the plant in the current quarter and has two more customers coming in CY4Q. With $0.16 EPS upside to the quarter and upside to the FY1Q guide of $0.23, we are raising our estimates for FY23 and FY24 and increasing our Price Target to $135 from $130."

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