
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet's stock outlook is positively influenced by a robust growth trajectory in its Telecom segment, which experienced a year-over-year increase of 59% and a sequential growth of 17%, reaching $554 million in the second fiscal quarter. Additionally, Non-Opcomm revenue demonstrated significant momentum, surging 30% quarter-over-quarter to $300.3 million, indicating strong demand across its service offerings. Operating margins have also improved, rising 30 basis points quarter-over-quarter to 10.9%, reflecting enhanced operational efficiency and profitability amidst expanding revenue streams.
Bears say
Fabrinet has reported a significant decline in cash flow from operations, with CFFO dropping to $46 million and free cash flow turning negative at ($5 million) compared to previous quarters. The company faces substantial risks from pricing pressure and challenges in maintaining productivity amidst current supply chain issues, which may hinder its ability to improve margins. Additionally, the revenue outlook suggests only a modest 4% quarter-over-quarter growth due to ongoing product transitions, raising concerns about long-term growth potential and the impact of potential multiple contractions as the AI investment cycle matures.
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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