The Sunnyvale, CA-based company is a provider of optical subsystems and components that are used in data communication and telecommunication applications.
The higher price target comes after the firm's meetings with Finisar's management and other industry contacts at the OFC optical trade show in Anaheim, CA.
"Our discussions reinforce our belief that demand for Telecom optical components is likely to be very strong this year driven particularly by 100G buildouts North America and China," the firm said in an analyst note.
Additionally, the firm has increasing confidence on the telecom side of Finisar's business, which makes up about 30% of revenue.
The firm also maintained its "hold" rating on the stock.
"At this point we're inclined to remain on the sidelines given our concerns around margins in 100G Datacom," Jefferies noted.
Shares of Finisar closed at $18.64 on Tuesday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.
Recently, 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 articles's author.
You can view the full analysis from the report here: FNSR