They had some kind of FREE two week offer for IBD, so I clicked it. Not a lot of content.
How Infinera Can Take On Ciena, Huawei In Networking
PETE BARLAS5/12/2015
Infinera ( INFN) has the potential to challenge several rivals, including Ciena( CIEN), for a bigger piece of the fiber optics networking equipment market. That's the conclusion from Brian Modoff, an analyst for Deutsche Bank, who opened coverage on the company Tuesday with a buy rating, citing its potential to grow in the cloud; its work helping telecoms adopt 100 gigabit ethernet bandwidth speeds on their networks; and data center interconnection demands by companies such as Google ( GOOGL) and Facebook ( FB).
Infinera shares were down 0.5% on the stock market today. The stock is up by more than 30% this year. The company also has been mentioned as a potential acquisition candidate.
Modoff noted that Infinera plays into a $15 billion market opportunity, including $5 billion in 100G long-haul optical network upgrades, more than $5 billion in Web 2.0 and cloud data center optical interconnects, and more than $5 billion in 100G metro aggregation.
"We note Infinera solidly positioned as the preferred vendor in major Web, cloud and Software-as-a-Service portals, and top 100 enterprise private clouds for optical interconnects," he wrote. "This is a multi-year growth story for Infinera and core basis for our bullish longer-term view on the stock."
Although Infinera is a leading player, Modoff added, the market — particularly the long-haul market — is packed with rivals.
"We note that the long haul optical market is highly competitive with Ciena, Coriant, Huawei Technologies, Alcatel-Lucent ( ALU) and ZTE participating," he wrote. "Hence, new product introductions or adverse changes in Infinera's customer relationships could negatively impact Infinera's market share position." |
