Analyst Dave Kang of B.Riley Financial reiterated a Buy rating on Infinera (INFN – Research Report), with a price target of $7.50.
Dave Kang’s Buy rating for Infinera Corporation (INFN) is primarily influenced by the company’s unexpectedly robust results and outlook, in spite of the challenging business environment. Kang was particularly impressed by the strong bookings with a book-bill of over 1 and the notable performance in the Americas and EMEA, contrary to the weak areas identified by competitors.
Kang also points to INFN’s execution of their margin expansion plans, with Gross Margin (GM) and Operating Margin (OM) showing a significant increase from the second quarter. Furthermore, he highlights the company’s ongoing growth with new design wins, including a major US service provider and two Tier-1 wins in Europe. Despite an ongoing accounting review process that may necessitate the restating of 2022 and 1H23 results, Kang emphasizes that management expects no lost revenue from this. Ultimately, Kang believes that INFN is well-positioned to achieve its long-term financial targets, including an EPS target of $1 by 2025/2026.
Kang covers the Technology sector, focusing on stocks such as Coherent Corp, Lumentum Holdings, and Aviat Networks. According to TipRanks, Kang has an average return of 22.4% and a 63.56% success rate on recommended stocks.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $12.00 price target.
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Infinera (INFN) Company Description:
Infinera Corp. engages in the provision of optical transport networking equipment, software, and services to telecommunications carriers. Its products include long-haul and subsea, metro networks, data center interconnect, and software. The company was founded by David F. Welch, Drew Daniel Perkins, and Jagdeep Singh in December 2000, and is headquartered in Sunnyvale, CA.
Read More on INFN:
- Infinera Corporation Announces Preliminary Third Quarter 2023 Financial Results
- Adtran downgraded to Neutral from Buy at Rosenblatt
- Infinera Corp (INFN) Q3 Earnings Cheat Sheet
- Poland’s Hawe Telekom Selects Infinera ICE6 800G Solution for High-capacity Services with Rapid Activation
- Hawe Telekom selects Infinera ICE6 800G solution
