Rosenblatt Securities Maintains Their Buy Rating on NeoPhotonics

By Jason Carr

In a report issued on February 23, Jun Zhang from Rosenblatt Securities maintained a Buy rating on NeoPhotonics (NYSE: NPTN), with a price target of $13. The company’s shares closed on Friday at $5.82.

Zhang said:

“We are cautious regarding first quarter guidance, but if Neo- Photonics no longer faces supply constraints we would not expect to see changes to March quarter consensus, particularly if Chinese vendor orders to NPTN increase sequentially in Q1. Additionally, we believe the outlook for the year remains positive. Our confidence comes from two key drivers for the com- pany this year – 5G wireless and the potential for 400G intra datacenter net- work upgrades.”

According to TipRanks.com, Zhang is ranked 0 out of 5 stars with an average return of -6.8% and a 45.9% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Himax Technologies, Lumentum Holdings, and Viavi Solutions.

NeoPhotonics has an analyst consensus of Moderate Buy, with a price target consensus of $8.83.

Based on NeoPhotonics’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $71.12 million and GAAP net loss of $18.19 million. In comparison, last year the company earned revenue of $110 million and had a net profit of $2 million.

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NeoPhotonics Corp. engages in the design, development, and manufacture of hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks. Its products include transceivers, tunable lasers, semiconductors, micro-opto-electro-mechanical systems, photonic integration, and 40G/100G modules.