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- Shares of Fabrinet (NYSE:FN) rose 7.5% on Thursday after Northland Capital Markets upgraded the company to Outperform and raised its price target to $220.
- Brokerage believes the optical equipment maker is well positioned to benefit from growth in AI data center at top customer Nvidia (NVDA) and more broadly at 800G and eventually 1.6T given increasing AI driven throughput.
- "FN also has exposure to an eventual recovery in carrier optical transport markets as carriers resume spending, burning down inventories at systems level OEM and component customers though the timeline for this recovery has extended," said Northland.