The analyst firm upgraded Infinera to "buy" from "hold," with a price target of $13. Stifel Nicolaus analysts wrote, "We are upgrading shares of Infinera with a target price of $13. Post our meetings at OFC, we believe that demand for 100G is now on a much more global scale versus a year ago. Specifically, we are seeing upgrades emerge in Europe and parts of Asia, versus being concentrated in North America 12 months ago."
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- INFN's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although INFN's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.83, which clearly demonstrates the ability to cover short-term cash needs.
- 44.50% is the gross profit margin for INFINERA CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -7.31% is in-line with the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, INFINERA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: INFN Ratings Report