Fabrinet downgraded to Market Perform from Outperform at Northland

Northland downgraded Fabrinet to Market Perform from Outperform with an unchanged price target of $200. The company reported upside to fiscal Q2 estimates but its outlook indicates slowing sequential growth in artificial intelliotence Datacom revenue, exacerbated by the transfer of legacy 100G Intel module sales, the analyst tells investors in a research note. The firm says that while telecom was stronger in Q2 and expected to grow sequentially in Q3, the recent strength in the shares and Fabrinet’s premium valuation metrics warrant a move to the sidelines.