Northland Securities analyst Tim Savageaux maintained a Buy rating on NeoPhotonics (NPTN) today and set a price target of $8.50. The company’s shares closed on Friday at $3.89, close to its 52-week low of $3.26.
Savageaux commented:
“We believe sentiment on NPTN is far too negative especially in light of comments at an investment conference last week which confirm our view of a manageable worse case scenario ex Huawei, with nothing priced into the shares regarding the return of Hauwei revs, either directly or via competitive suppliers, or any strategic interest in the company. We officially reduce estimates given the ex Huawei guide, and reit our OP rating and $8.50 PT with the shares trading at 0.6X ex Huawei revs.”
According to TipRanks.com, Savageaux is a 2-star analyst with an average return of -0.2% and a 43.2% success rate. Savageaux covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, DASAN Zhone Solutions Inc, and Applied Optoelectronics.
Currently, the analyst consensus on NeoPhotonics is a Moderate Buy with an average price target of $6.13, representing a 57.6% upside. In a report issued on May 20, B.Riley FBR also upgraded the stock to Buy with a $5.50 price target.
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Based on NeoPhotonics’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $14.09 million. In comparison, last year the company had a GAAP net loss of $18.25 million.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is neutral on the stock. Last month, Yuen Wupen, the VICE PRESIDENT GLOBAL PRODUCT of NPTN bought 23,999 shares for a total of $83,997.
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NeoPhotonics Corp. engages in the design, manufacture, and sale of hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive communications networks. Its product portfolio includes pluggable coherent modules, coherent-components, 100G/400G client transceivers, optical switching, high speed ICs, 100G / 400G laser devices and light engines, passive components, network monitoring and control, and 10G and low rate components. The company was founded on October 31, 1996 and is headquartered in San Jose, CA.
