NEW YORK (TheStreet) -- Barclays decreased its price target today on Finisar Corp. (FNSR) stock to $23 from $28 while maintaining its "overweight" rating of the Sunnyvale-based optical subsystems and components company.
"FNSR reported disappointing FY2Q15 results and guided below expectations on roughly all metrics. While we are disappointed with the commentary, we are still positive on the stock for the longer term and favor the company's mix towards datacom where we see a strong opportunity," analysts said.
"FY3Q revenues are expected to grow sequentially, driven by demand for 40G and 100G datacom transceivers and transceivers for wireless applications," analysts noted.
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"Aside from FNSR's mix skew towards datacom, the company continues to benefit from growth in cloud services which is driving network hardware upgrades of existing data centers and the build-out of new data centers," analysts added.
Shares of Finisar are up 2.01% to $17.34.
Separately, TheStreet Ratings team rates FINISAR CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FINISAR CORP (FNSR) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself."