
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet's stock outlook is positively influenced by a significant 59% year-over-year increase in telecom sales, which amounted to $505 million, showcasing strong demand for advanced optical solutions, particularly in 400G/800G ZR shipments. Additionally, the company's revenue for the first quarter of fiscal year 2026 rose by 22% year-over-year and 8% quarter-over-quarter, totaling $978 million, surpassing estimates and indicating successful market expansion. Fabrinet's strategic integration of optic component production with systems production and anticipated new production capacity of over $2 billion by the end of fiscal year 2026 further solidify its growth trajectory and competitive position in the manufacturing sector.
Bears say
Fabrinet experienced a decline in datacom revenues, with a 1% decrease quarter-over-quarter and a 17% drop year-over-year, primarily attributed to laser supply constraints. The company's gross margins of 12.3% also fell by 30 basis points quarter-over-quarter and 40 basis points year-over-year, influenced by foreign exchange headwinds and increased merit-based compensation, which compounded operational challenges. Additionally, persistent pricing pressures and supply chain issues pose significant risks to profitability and could result in lost revenues and market share if timely orders to suppliers are not maintained.
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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