Fabrinet price target lowered to $220 from $230 at Needham

Needham analyst Alex Henderson lowered the firm’s price target on Fabrinet (FN) to $220 from $230 and keeps a Buy rating on the shares. The firm cites the ongoing pressures in the Telecom Service Provider market while also reducing its estimation for AI growth, saying the lowered AI growth forecast reflects its belief the sharp increase in performance at a substantially higher price per unit of the NVIDIA (NVDA) product line implies a slower growth rate in GPUs. The stock’s valuation is less compelling as AI growth slows and Telecom’s recovery lags, the firm added.