The firm lowered its price target on shares of the Sunnyvale, CA-based manufacturer of high capacity optical transmission equipment to $8 from $10, citing a lack of visibility until the second half of fiscal 2017, according to TheFly.
Infinera will likely experience further margin pressure from R&D spending this year, Citigroup noted.
Additionally, its "aggressive" search of Metro deals is weighing on earnings, the firm said in a note cited by TheFly.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Infinera's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.
You can view the full analysis from the report here: INFN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.