Analysts Offer Insights on Consumer Goods Companies: Immersion Corp (NASDAQ: IMMR) and Finisar Corp (NASDAQ: FNSR)

By Carrie Williams

Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Immersion Corp (NASDAQ: IMMR) and Finisar Corp (NASDAQ: FNSR).

Immersion Corp (NASDAQ: IMMR)

B.Riley FBR analyst Josh Nichols maintained a Buy rating on Immersion Corp (NASDAQ: IMMR) today and set a price target of $18. The company’s shares closed yesterday at $12.40, close to its 52-week high of $12.49.

According to TipRanks.com, Nichols is a 5-star analyst with an average return of 30.1% and a 59.7% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, OSI Systems, and ID Systems.

Currently, the analyst consensus on Immersion Corp is Moderate Buy and the average price target is $17.50, representing a 41.1% upside.

In a report issued on February 23, Craig-Hallum also reiterated a Buy rating on the stock with a $17 price target.
Finisar Corp (NASDAQ: FNSR)

B.Riley FBR analyst Dave Kang maintained a Hold rating on Finisar Corp (NASDAQ: FNSR) today and set a price target of $17.50. The company’s shares closed yesterday at $20.22.

Kang wrote:

“One of the major ongoing issues for Finisar (FNSR) is GM compression, which has declined for five straight quarters and is anticipated to decline as well in F4Q. While competitors such as Lumentum (LITE) and Oclaro (OCLR) have adjusted their datacom strategy, FNSR doesn’t have such flexibility as it is significantly levered to the datacom sector. Another issue for FNSR is that the company, being vertically integrated, is investing $150M in the Sherman facility with an expectation of getting business from Apple (AAPL), which has committed to purchase $390M of VCSELs (Vertical Cavity Surface Emitting Lasers) over unspecified time. In comparison, LITE, with its hybrid production model, has already generated significant 3D sensing (3DS) revenue with minimal investment. Last, FNSR reported that the pricing environment in the datacom industry has continues to deteriorate in recent months while the telecom demand remains soft as well.”

According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.6% and a 64.6% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as Ribbon Communications Inc, Applied Optoelectronics, and Acacia Communications.

Currently, the analyst consensus on Finisar Corp is Moderate Buy and the average price target is $22.25, representing a 10.0% upside.

In a report issued on February 26, Loop Capital Markets also maintained a Hold rating on the stock with a $17 price target.

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