Fabrinet upgraded to Neutral from Sell at B. Riley

B. Riley analyst Dave Kang upgraded Fabrinet (FN) to Neutral from Sell with a price target of $176, down from $178. The firm cites valuation for the upgrade with the shares down 22% year-to-date. The firm still remains concerned about Fabrinet’s 800G sales to Nvidia (NVDA), which it believes could come under pressure as hyperscalers increasingly buy transceivers directly rather than through Nvidia. However, a significant amount of the risk factors could now be in the stock, the analyst tells investors in a research note. Riley also believes Fabrinet has several catalysts to counter these risk factors, including improving telecom demand.