
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet's stock outlook appears positive due to substantial growth in its Telecom segment, which reported a 59% increase year-over-year (Y/Y) and a 15% quarter-over-quarter (Q/Q) rise, contributing $474 million in revenue, bolstered by strong demand for 400G/800G ZR shipments. Additionally, the company's overall revenues for the first quarter of fiscal 2026 increased by 22% Y/Y and 8% Q/Q to $978 million, surpassing estimates by approximately $50 million. The successful integration of optical component production with systems production has enabled Fabrinet to attract new customers and optimize costs, while an anticipated increase in production capacity exceeding $2 billion by the end of fiscal 2026 further enhances its growth potential.
Bears say
Fabrinet's financial outlook is negatively influenced by a 1% decline in Datacom revenues quarter-over-quarter and a significant 17% decline year-over-year, indicating challenges in their laser supply chain. Gross margins have decreased to 12.3%, falling short of expectations and reflecting pressures from foreign exchange fluctuations and rising labor costs, which may hinder productivity gains amid current market conditions. Additionally, the risk of losing market share due to the inability to secure timely and sufficiently large orders from suppliers poses a threat to the company's revenue stability and overall profitability.
This aggregate rating is based on analysts' research of Fabrinet and is not a guaranteed prediction by Public.com or investment advice.
Fabrinet (FN) Analyst Forecast & Price Prediction
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