“OCLR reported solid F4Q results of $120.9M/$0.08 despite being negatively impacted by the ZTE (763-HKG) ban. While 100G was flat Q/Q, 40G and below declined 21% Q/Q. The company did not provide F1Q guidance nor host a conference call to discuss the quarter, due to the pending acquisition by Lumentum Holdings (LITE). The company has received stockholder approval, and still expects the transaction to close in C2H. The remaining hurdle at this point appears to be the Chinese anti-trust review, which we have limited insight into. We maintain our FY19/FY20 EPS estimates of $0.37/$0.52, and also maintain our price target of $9.50, which is based on an unchanged P/E multiple of 17.5x our CY19 EPS estimate plus net cash; our price target reflects the offer price by LITE.”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.0% and a 63.6% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Applied Optoelectronics, Acacia Communications, and Lumentum Holdings.
Currently, the analyst consensus on Oclaro is a Moderate Buy with an average price target of $9.25, implying a 2.1% upside from current levels. In a report released yesterday, Piper Jaffray also maintained a Hold rating on the stock.
Oclaro’s market cap is currently $1.54B and has a P/E ratio of 13.71. The company has a Price to Book ratio of 2.65.
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Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for optical transport, metro networks, enterprise networks, and data centers. It offers differentiated solutions for optical networks and high-speed interconnects for streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The company was founded on April 27, 2009 and is headquartered in San Jose, CA.