In a report released today, Alex Henderson from Needham maintained a Hold rating on Acacia Communications (NASDAQ: ACIA). The company’s shares closed yesterday at $33.66.
Henderson wrote:
“Acacia delivered in-line 2Q18 results and better than expected 3Q18 guidance. The strong 2H18 outlook reflects increasing traction with new products including and silicon PIC solutions, customer diversification with a growing number of 10% customers and the resumption of shipments to ZTE, which will ramp over several quarters. We believe ACIA remains ahead of the competition in the CFP2 DCO, 600G per lambda (AC1200) and silicon PIC segments and expect the ramp of these products to drive strong revenue growth and margin expansion leading to 2019 and 2020 NG EPS in the range of $1.00-$1.25 and $1.50-$1.75, respectively. EV/E multiple to 2020 NG EPS implies a price of $40-$45. With ACIA trading at ~$37 after hours, we don’t see enough upside to justify a Buy rating.”
According to TipRanks.com, Henderson is a 5-star analyst with an average return of 12.0% and a 51.5% success rate. Henderson covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, Ceragon Networks, and Extreme Networks.
Acacia Communications has an analyst consensus of Moderate Buy, with a price target consensus of $38.39.
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Based on Acacia Communications’ latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $3.25 million. In comparison, last year the company had a net profit of $4.66 million.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock.
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Acacia Communications, Inc. engages in the development, manufacture, and sale of high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity, and cost.
