Needham rates Lumentum stock as strong buy, along with industry peers Applied Optoelectronics (AAOI), Finisar (FNSR), Infinera (INFN), NeoPhotonics (NPTN) and Oclaro (OCLR). Applied Optoelectronics is poised to benefit from the growth of cloud computing, Henderson said. "We expect strong demand growth over the next several years, as Web 2.0, Big Data, social media and IaaS (infrastructure as a service) companies drive efficiencies through their current and new scaled-out data center footprints," he said. His price target for Applied Optoelectronics is 85. He has price targets for Finisar of 44, Infinera of 14.50, NeoPhotonics of 13, and Oclaro of 14.
Fiber-Optic Stocks Rated Strong Buys; One Gets Big Price-Target Hike | Stock News & Stock Market Analysis - IBD
Analysts are expecting Finisar to ship tens of millions of 3-D sensing units to Apple in the October quarter and that 100G datacom and ROADM line cards business will also be very strong. In addition, the company and the sell-side are both expecting that China will start to rebound shortly. When questioned about DCI supply-demand imbalances, here's what Jerry Rawls, CEO of Finisar, said, "Well, so far, there's still a shortage. And I hear people talk every now and then that says, Oh, well, we're coming close to being supply equals demand, but that's not the behavior we see from the big customers. So -- but it will happen. It's inevitable at some point supply is going to catch up with demand. And our belief is it will happen in calendar year 2018 some time."
Finisar On The State Of The Optical Components Sector
