Fabrinet price target raised to $165 from $150 at Needham

Needham analyst Alex Henderson raised the firm’s price target on Fabrinet to $165 from $150 and keeps a Buy rating on the shares after its Q4 earnings beat. The company’s strong AI results overcame a sharp falloff in Telecom on the inventory correction and a decline in older Data Comm products, driving “solid” results and guidance, the analyst tells investors in a research note. Once the inventory correction in Telecom and traditional non-AI Data Comm runs its course, rebounds in these businesses will amplify the AI growth, the firm added.