Fabrinet price target raised to $350 from $300 at Northland

Northland raised the firm’s price target on Fabrinet (FN) to $350 from $300 and keeps an Outperform rating on the shares following the company’s announcement of warrant agreements with Amazon (AMZN). The $400M in annual module purchases Amazon announced as part of a separate warrant agreement with Applied Optoelectronics (AAOI) “could well represent the bulk of their demand,” opening up the possibility of the Fabrinet deal being focused on other elements of AI Infrastructure, especially given Fabrinet’s capabilities at the systems level, the analyst tells investors.