05-30-2017, 11:35 PM
Needham & Company analyst, Alex Henderson, reiterated his Buy rating on shares of Acacia Communications (NASDAQ: ACIA) and came away feeling upbeat on the company's prospects after hosting the company on a multi city non deal roadshow. Management was upbeat on the outlook for CY2H and CY18 and the analyst was reminded of the new product development strength. Management has not seen a meaningful change in China, "run-rate" demand and some smaller regional contracts appear to be working through inventory and setting up for the CY2H recovery. Additionally, management is still seeing strong demand in the DCI segment as well as in Metro Core outside of China. Net: at 14x EV/E on CY18 EPS, the analyst thinks ACIA looks oversold. No change to the price target of $65.