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Acacia, Finisar up as Piper sees return of China demand

Published 08/23/2018, 09:40 AM
Updated 08/23/2018, 09:40 AM
© Reuters.  Acacia, Finisar up as Piper sees return of China demand
  • Acacia Communications (NASDAQ:ACIA) is up 2.9% in early going, and Finisar (NASDAQ:FNSR) up 6.7%, after Piper Jaffray upgrades each to Overweight from Neutral on signs of improving optical-equipment demand.
  • Analyst Troy Jensen sees easy comps for Acacia along with an improvement in demand from China to spur accelerating revenue growth; the company's leadership in certain products (Coherent DSPs, PiCs and DCOs) are the best way to play the 400G cycle, he writes. (h/t Bloomberg)
  • Finisar's also facing easy comps and a tailwind when the 400G cycle kicks in, he says.
  • He's boosted his price target on Acacia to $46, from $38, implying 17% upside. He's raising his price target on Finisar to $26 from $18, implying 31% upside.
  • Also moving in the sector: NPTN +3.3%; AAOI +1.1%; MTSI +1.8%.
  • Now read: Intel (NASDAQ:INTC), Don't Miss Out


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