Analyst Ryan Koontz of Needham reiterated a Buy rating on Fabrinet, with a price target of $350.00.
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Ryan Koontz has given his Buy rating due to a combination of factors including Fabrinet’s strong financial performance and promising future prospects. The company’s recent quarterly results surpassed market expectations, with revenue and earnings per share exceeding consensus estimates. This positive outcome was driven by significant growth in the Telecom and Automotive segments, despite a modest improvement in the Datacom sector.
Koontz remains optimistic about Fabrinet’s mid-term potential, citing improvements in supply chain issues and the introduction of new products for major clients like Amazon. Additionally, the company is experiencing share gains with key partners and is considering accelerating its expansion plans, indicating strong anticipated demand. These factors contribute to the increased estimates for future fiscal years and support the Buy rating with a price target of $350.