There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Photronics (PLAB) and Infinera (INFN) with bullish sentiments.
Photronics (PLAB)
Northland Securities analyst Gus Richard maintained a Buy rating on Photronics today and set a price target of $12. The company’s shares closed yesterday at $8.46, close to its 52-week low of $7.95.
Richard wrote:
“We believe that this leverages PLAB to the growth of fabless IC and flat-panel display makers in China. In addition, mask making is a high fixed cost business, and the increased depreciation is depressing GM as utilization of these new mask shops increase we expect GM expansion from 19% in FY19:Q3 (July) to 28% by FY20:Q4 (Oct.), driving earnings acceleration.”
According to TipRanks.com, Richard is a 5-star analyst with an average return of 22.9% and a 66.9% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, SolarEdge Technologies, and Akoustis Technologies.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Photronics with a $13.50 average price target.
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Infinera (INFN)
Northland Securities analyst Tim Savageaux maintained a Buy rating on Infinera today and set a price target of $5. The company’s shares closed yesterday at $3.20, close to its 52-week low of $2.80.
Savageaux wrote:
“We expressed a view in our 4/15 600/800G note (The Last Speed Feed Optics?) that INFN might have the most attractive coherent technology strategy with one foot in the ACIA 600G/1.2T camp and another in vertically integrated 800G. INFN echoed that view on Wednesday noting they were the only vendor with both 600G/800G capability and one of two with announced 800G plans. While vertical integration on the Coherent DSP side in addition to InP optics via PICs has proved a challenge to manage in the past, post CSCO/ACIA we believe the company’s in house DSP capability should be reevaluated as a strong, if not market leading, capability in an increasingly scarce and valuable technology.”
According to TipRanks.com, Savageaux is a 3-star analyst with an average return of 3.0% and a 52.1% 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 Infinera is a Hold with an average price target of $4.15.
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