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To: Bill Harmond who wrote (42805)	6/3/2008 9:59:06 AM
From: bob zagorin	Read Replies (1) \| Respond to of 57684

gsco on infn: "...Infinera Corp. EPS (FY Dec) 2008E $0.10, 2009E $0.32 Neutral/Neutral (INFN) 14.06 Investment view We initiate coverage of Infinera with a Neutral rating and a $14.50 price target, as we believe the stock’s premium valuation largely reflects strong forward EPS growth. Our thesis is that Infinera has a highly differentiated product—the proverbial “better mousetrap”—that gives it a multiyear lead over the competition in the high-growth WDM segment of the optical equipment market. Assuming Infinera can execute on this advantage, we expect an EPS CAGR of around 40% over the next 5 years, driven by 15%-20% top-line growth and operating margin expansion from 4% in 2009E toward its long-term target of 15%, partly offset by a tax rate increase..."