| | Infinera Benefits From Increasing Optical Demand, Piper Sandler Says In Upgrade
Benzinga
Priya Nigam
BenzingaApril 2, 2020
The demand environment for optical equipment suppliers is improving, and Infinera Corp. (NASDAQ: INFN) has an impressive product pipeline, according to Piper Sandler.
The Infinera Analyst
Troy Jensen upgraded Infinera from Neutral to Overweight and with a $8.50 price target.
The Infinera Thesis
Work-at-home initiatives during the coronavirus pandemic are putting excessive stress on carrier and data center networks, resulting in rising demand for optical equipment suppliers, Jensen said in the Thursday upgrade note. (See his track record here.)
Supply constraints are now being alleviated, as China is reaching near full production capacity, the analyst said. Although production concerns are emerging from countries like Malaysia and Thailand, these are “less of a concern versus China,” he said.
The 600G Groove platform, which was launched last year, has been gaining momentum and is likely to ramp through 2020, Jensen said.
Infinera has a healthy pipeline of new technologies that “should help sustain their momentum” in the second half of 2020 and through 2021, the analyst said.
These tailwinds, coupled with the recent selloff in the company’s shares, create “a compelling risk/reward scenario,he said.
INFN Price Action
Infinera shares were trading 5.87% higher at $5.05 at the time of publication Thursday.
Related Links:
Benzinga's Top Upgrades, Downgrades For April 2, 2020
92 Biggest Movers From Yesterday
Latest Ratings for INFN
DateFirmActionFromTo|
| Apr 2020 | Piper Sandler | Upgrades | Neutral | Overweight | | Mar 2020 | Nomura | Maintains | | Neutral | | Mar 2020 | Citigroup | Downgrades | Neutral | Sell |
View More Analyst Ratings for INFN
View the Latest Analyst Ratings
See more from Benzinga
OrganiGram May Underperform Broader Cannabis Market In Q2, Says Cantor Fitzgerald Stifel Upgrades, Downgrades Airlines Facing Coronavirus Shock, Says Hawaiian Well-Positioned BofA Upgrades First Solar On Valuation, Net Cash Balance |
|
