B.Riley FBR analyst Dave Kang maintained a Hold rating on Infinera (INFN) today and set a price target of $5.50. The company’s shares opened today at $5.02.
Kang noted:
“Infinera’s (INFN) 4Q revenue of $332.1M beat consensus by $7M, based on better-than- expected orders. The company’s 1Q revenue outlook of $310M was below consensus of $327.5M, due to a large order that was pulled into 4Q from 1Q. Nevertheless, we were encouraged by the trend in improving orders, as customers that paused spending following the Coriant transaction have returned. The company recently introduced ICE6, which will be shown at OFC in March, and expects ICE6 to go into production by mid-2020 leading to GM expansion. Management also expects to capitalize on the current Huawei situation, even though it could take a while before bearing any fruit. Despite some encouraging signs, we remain on the sidelines until the company can demonstrate sustained revenue growth and improved profitability.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.2% and a 62.0% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Luna Innovations Inc.
Infinera has an analyst consensus of Hold, with a price target consensus of $6, which is a 19.5% upside from current levels. In a report released today, Morgan Stanley also maintained a Hold rating on the stock with a $5.50 price target.
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The company has a one-year high of $12.39 and a one-year low of $3.54. Currently, Infinera has an average volume of 2.16M.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of INFN in relation to earlier this year.
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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.
