Analyst Ryan Koontz of Needham maintained a Buy rating on Fabrinet (FN – Research Report), retaining the price target of $280.00.
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Ryan Koontz has given his Buy rating due to a combination of factors, including the strong performance of Fabrinet in the Telecom sector, which saw a significant year-over-year growth of 24%. This growth contributed substantially to the overall 17% increase in total revenue for the company, surpassing consensus expectations for both revenue and earnings per share.
Furthermore, Koontz noted that despite a temporary stagnation in the Datacom segment, the company’s guidance for future quarters remains optimistic, driven by continued Telecom strength and momentum in 400ZR products. Management’s confidence in ongoing growth is also supported by their recent expansion efforts, indicating a positive outlook for Fabrinet’s future performance.