05-24-2017, 04:28 AM
And the optical networker stocks can recover more on the back of a recovery in Chinese demand:
The update shouldn't come as a complete surprise. Last Wednesday, Rosenblatt analyst Jun Zhang initiated coverage on Oclaro with a buy rating and $12-per-share price target -- a hefty premium to Oclaro's current price of $9.37 per share. "We believe that China Mobile's Phase 12 60T procurement and China Telecom's Metro upgrade are likely to begin in June and September/October, respectively, which should help reignite industry demand and push OCLR back to its normal revenue levels by the end of this year," Zhang explained at the time. "We believe China's optical demand can resume its growth in 2018 with more metro-level upgrades."
Why Optical Communications Stocks Popped on Monday -- The Motley Fool