Barclays Analyst Highlights Continued Telecom Strength for Fabrinet (NYSE:FN)

Barclays analyst George Wang recently lowered the price target on Fabrinet (NYSE:FN) to $234 from $245 and kept an Equal Weight rating on the shares. Fabrinet offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services.

In an investor note, the analyst noted that the company reported solid fiscal Q3 results, though they were overshadowed by softer Datacom despite continued Telecom strength.

The advisory sensed that the 1.6T cycle timing was slightly shifted to the right or at a minimum came with great uncertainty when the cycle started.

An automated assembly line displaying the advanced packaging technology used by the company.

While disclosing earnings for the third fiscal quarter, the firm provided guidance for the fourth fiscal quarter, with revenue expected between $860 million and $900 million and non-GAAP earnings per share of $2.55 to $2.70. CEO Grady expressed optimism about continued growth in Telecom and Automotive segments, while highlighting potential moderation in Automotive growth due to prior outsized performance.

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