
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet has demonstrated robust financial performance, particularly in its Telecom sector, which experienced a 24% year-over-year growth and reached $348 million in revenue, attributed to a significant increase in 400ZR shipments for data center interconnects. The company's cash generated from operating activities rose to $116 million in F2Q25, marking a $33 million increase from the previous quarter and a notable improvement from the prior year. Furthermore, Fabrinet is anticipated to benefit from a recovery in its Datacom segment and strong upcoming shipments, bolstered by its strategic integration of optic component production with system production, leading to enhanced cost efficiencies and product performance.
Bears say
Fabrinet projects total revenue between $850 million and $870 million, surpassing consensus estimates of $825 million, but anticipates a decline in Datacom revenue due to NVIDIA's transition to new transceiver technology. The company is also facing pressure from pricing challenges and the potential inability to achieve productivity gains amidst ongoing supply issues, which could adversely impact profitability if conditions remain unfavorable. Additionally, the issuance of in-the-money warrants will result in $4.2 million in contra-revenues for the March quarter, leading to a downward revision of EPS estimates by approximately $0.14 from prior guidance.
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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