NeoPhotonics Corp.’s Hold Rating Reaffirmed at Deutsche Bank (NPTN)
NeoPhotonics Corp. (NASDAQ:NPTN)‘s stock had its “hold” rating reiterated by equities research analysts at Deutsche Bank in a research note issued to investors on Tuesday. They currently have a $4.50 price target on the stock, down from their previous price target of $5.50. Deutsche Bank’s price target would indicate a potential upside of 3.45% from the company’s current price.
The analysts wrote, “Maintain Hold on weak (low 20s) gross margin outlook; higher 1H opex. Neo reported Q4 CY13 [$74.4M / ($0.06)] – slightly light on revs; slightly better on loss/share and guided Q1: $67.5M to 68.5M in revs – appx inline vs consensus, and ($0.28) to ($0.32) in loss/share (vs ($0.17) consensus) based on a 20-23% gross margin outlook. The Q2/14 outlook calls for $73M to 78M in revs – appx inline vs consensus, with the gross margin guidance in the 20-25% range. The below consensus (low 20s) gross margin view – combined with management noting product strength coming from lower margin Access in China – is likely to stretch out the timing to profitability in our view. Maintain Hold; our PT moves from $5.50 to $4.50 on our updated FY14/15 estimates.”
Shares of NeoPhotonics Corp. (NASDAQ:NPTN) traded up 1.15% during mid-day trading on Tuesday, hitting $4.40. The stock had a trading volume of 181,304 shares. NeoPhotonics Corp. has a 52 week low of $4.20 and a 52 week high of $9.77. The stock has a 50-day moving average of $6.19 and a 200-day moving average of $6.77. The company’s market cap is $139.3 million.
NeoPhotonics Corp. (NASDAQ:NPTN) last posted its quarterly earnings results on Monday, May 19th. The company reported ($0.10) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.09) by $0.01. The company had revenue of $74.40 million for the quarter, compared to the consensus estimate of $74.60 million. Analysts expect that NeoPhotonics Corp. will post $-0.46 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Piper Jaffray cut their price target on shares of NeoPhotonics Corp. from $7.50 to $5.00 in a research note on Monday. Separately, analysts at Zacks downgraded shares of NeoPhotonics Corp. to a “neutral” rating in a research note on Wednesday, April 23rd. They now have a $8.70 price target on the stock. Finally, analysts at Needham & Company LLC reiterated a “buy” rating on shares of NeoPhotonics Corp. in a research note on Monday, April 14th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $7.05.
NeoPhotonics Corporation is a designer and manufacturer of photonic integrated circuit (NASDAQ:NPTN)-based modules and subsystems for bandwidth-intensive, high-speed communications networks.
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