Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Acacia Communications (ACIA) and Fabrinet (FN).
Acacia Communications (ACIA)
In a report issued on May 3, Ryan Koontz from Rosenblatt Securities maintained a Buy rating on Acacia Communications, with a price target of $65. The company’s shares closed yesterday at $55.78.
Koontz said:
“We maintain our strong outlook for ACIA supported by a strong build of the AC1200 product cycle in 2019 and 2020, while a promising 400G-ZR cycle waits in 2H20. We maintain our Buy rating on ACIA and raise our price target to $65.”
According to TipRanks.com, Koontz is a 4-star analyst with an average return of 20.1% and a 75.0% success rate. Koontz covers the Consumer Goods sector, focusing on stocks such as CommScope Holding, Juniper Networks, and Arista Networks.
Acacia Communications has an analyst consensus of Moderate Buy, with a price target consensus of $62.50, which is a 12.0% upside from current levels. In a report issued on April 18, Northland Securities also maintained a Buy rating on the stock with a $65 price target.
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Fabrinet (FN)
In a report released today, Tim Savageaux from Northland Securities maintained a Hold rating on Fabrinet, with a price target of $50. The company’s shares closed yesterday at $60.09, close to its 52-week high of $62.31.
Savageaux said:
“We believe INFN has historically been a mid single digit customer for FN, or roughly ~$20M/Q, and while providing no color on current business levels FN noted expectations for INFN to be a >10% customer as a result of outsourcing Coriant’s Berlin mfg operation to FN. FN also noted lower GMs on the deal moving the company toward the low end of a 12.0-12.5% GM range. This implied fairly modest bottom line accretion from the deal at mid to high single digit GMs more typical of CM peers such as SANM or CLS, but it still likely to add $25M+ per Q in revenue and $0.05+ in EPS, adding back our recent cuts stemming from LITE’s datacom module exit and broader datacom weakness.”
According to TipRanks.com, Savageaux is a 4-star analyst with an average return of 5.9% and a 56.2% success rate. Savageaux covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, DASAN Zhone Solutions Inc, and Acacia Communications.
Fabrinet has an analyst consensus of Moderate Buy, with a price target consensus of $57.
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