NeoPhotonics (NPTN) Receives a Buy from Needham

By Ryan Adsit

In a report released today, Alex Henderson from Needham assigned a Buy rating to NeoPhotonics (NPTNResearch Report), with a price target of $15.00. The company’s shares closed last Friday at $9.41.

According to TipRanks.com, Henderson is a top 100 analyst with an average return of 30.6% and a 71.2% success rate. Henderson covers the Technology sector, focusing on stocks such as SailPoint Technologies Holdings, Applied Optoelectronics, and CrowdStrike Holdings.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for NeoPhotonics with a $14.20 average price target, a 45.2% upside from current levels. In a report issued on September 10, Rosenblatt Securities also reiterated a Buy rating on the stock with a $16.00 price target.

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Based on NeoPhotonics’ latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $65.01 million and GAAP net loss of $17.43 million. In comparison, last year the company earned revenue of $103 million and had a net profit of $5.73 million.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NPTN in relation to earlier this year.

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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.