Needham & Company LLC Reiterates “Buy” Rating for Fabrinet (NYSE:FN)

Fabrinet (NYSE:FN)‘s stock had its “buy” rating reaffirmed by stock analysts at Needham & Company LLC in a report released on Tuesday,Benzinga reports. They currently have a $540.00 price objective on the technology company’s stock. Needham & Company LLC’s price target would indicate a potential upside of 28.49% from the stock’s current price.

Several other equities analysts have also commented on the company. Barclays raised their price objective on Fabrinet from $537.00 to $548.00 and gave the company an “overweight” rating in a research report on Tuesday. Rosenblatt Securities reissued a “buy” rating and set a $550.00 price target on shares of Fabrinet in a research report on Tuesday. Zacks Research lowered shares of Fabrinet from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Susquehanna raised their target price on shares of Fabrinet from $550.00 to $570.00 and gave the company a “positive” rating in a research note on Thursday, January 22nd. Finally, JPMorgan Chase & Co. lifted their target price on shares of Fabrinet from $430.00 to $530.00 and gave the company an “overweight” rating in a report on Tuesday, November 4th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $511.11.

Fabrinet Stock Performance

Fabrinet stock opened at $420.27 on Tuesday. Fabrinet has a fifty-two week low of $148.55 and a fifty-two week high of $531.22. The stock’s 50 day simple moving average is $473.29 and its two-hundred day simple moving average is $407.22. The stock has a market cap of $15.06 billion, a price-to-earnings ratio of 40.26 and a beta of 1.04.

Fabrinet (NYSE:FN) last announced its earnings results on Monday, February 2nd. The technology company reported $3.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.26 by $0.10. The firm had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.08 billion. Fabrinet had a return on equity of 18.69% and a net margin of 9.69%.The business’s revenue was up 35.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.61 EPS. Fabrinet has set its Q3 2026 guidance at 3.450-3.600 EPS. On average, analysts predict that Fabrinet will post 9.4 earnings per share for the current year.

Insider Activity

In related news, Director Thomas F. Kelly sold 2,200 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $464.14, for a total value of $1,021,108.00. Following the transaction, the director directly owned 18,789 shares of the company’s stock, valued at approximately $8,720,726.46. This represents a 10.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Seamus Grady sold 22,451 shares of the stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $446.95, for a total value of $10,034,474.45. Following the sale, the chief executive officer owned 23,573 shares in the company, valued at approximately $10,535,952.35. This represents a 48.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 28,151 shares of company stock worth $12,643,707 over the last 90 days. 0.24% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of FN. Westend Capital Management LLC purchased a new stake in shares of Fabrinet during the fourth quarter valued at $29,000. Root Financial Partners LLC bought a new position in Fabrinet during the 3rd quarter valued at about $34,000. Rakuten Securities Inc. boosted its holdings in shares of Fabrinet by 340.9% during the 4th quarter. Rakuten Securities Inc. now owns 97 shares of the technology company’s stock valued at $44,000 after acquiring an additional 75 shares during the last quarter. USA Financial Formulas purchased a new stake in shares of Fabrinet during the 4th quarter valued at about $49,000. Finally, Elevation Point Wealth Partners LLC bought a new stake in shares of Fabrinet in the second quarter worth approximately $35,000. 97.38% of the stock is owned by institutional investors.

Fabrinet News Summary

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Q2 results beat consensus: EPS $3.36 vs $3.26 and revenue $1.13B (up 35.9% YoY), the company described record revenue and raised multi-quarter guidance — fundamental beat that supports upside. Fabrinet Q2 Earnings Surpass Estimates
• Positive Sentiment: Multiple analyst actions supportive of higher valuation: Wolfe Research upgraded to Outperform with a $540 PT; Needham and Rosenblatt reaffirmed/maintained buy ratings with $540–$550 targets — shows sustained analyst conviction. Wolfe Research upgrade
• Positive Sentiment: Analysts flag long-term growth drivers: reports highlight capacity expansion and hyperscale/cloud demand as structural growth supports that underpin buy ratings. TipRanks: Capacity expansion thesis
• Neutral Sentiment: Earnings call materials and transcripts published — useful for digging into customer mix, AI-related commentary, margins and guidance details but do not by themselves change fundamentals. Earnings call presentation
• Neutral Sentiment: Pre-market headlines flagged volatility and notable trading volume (above average), indicating heavier-than-usual positioning changes rather than a clear directional catalyst. Pre-market movers
• Negative Sentiment: Critical analysis and a downgrade/concern piece highlighted three key risks (two related to AI demand dynamics and one on valuation), raising investor worry about concentration, lumpy AI order timing, and premium multiples — likely a major reason for the sell-off despite the beat. Seeking Alpha: 3 Key Concerns
• Negative Sentiment: Market reaction: several outlets reported shares tumbling despite the strong quarter and guidance, indicating that investors are trimming positions (profit-taking, rotation, or worry about near-term AI order timing). Investing.com: shares tumble

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.