09:10 AM EST, 12/06/2013 (MT Newswires) -- Shares of Finisar Corp. rose premarket Friday, as investors were encouraged by a stronger-than-expected fiscal second-quarter report by the provider of optical subsystems and components, which prompted Janney Capital Markets to raise its target price on the stock by $1. The firm now has a $30 fair value estimate on FNSR, up from $29. It maintained its buy investment rating on the stock.
The shares were up 5.9% at $23.05 in recent premarket trading, nearing its 52-week high of $26.49.
Investors had been worried about the impact on Finisar from difficulties being faced by its largest customer, Cisco Systems Inc. (CSCO). However, the results released late Thursday showed "when Cisco catches a cold, Finisar...is fine," Janney said in a note to clients.
FNSR's earnings per share and review for the quarter ended Oct. 27 came in above analysts' expectations and it forecast Q3 results above Street estimates. Janney called the guidance "impressive."
"Despite Cisco facing near-term challenges, Finisar is growing its business with this large customer while also improving overall customer diversification," Janney added. |
