NEW YORK (TheStreet) -- Shares of Finisar (FNSR - Get Report) were advancing in mid-afternoon trading on Tuesday as the company's stock rating was raised ahead of its 2017 fiscal first quarter earnings. The quarterly report is due out after Thursday's closing bell.

Stifel upgraded shares to "buy" from "hold" with a $28 price target earlier today, the Fly reports.

The firm believes that the demand outlook for the company's 100G high-speed receivers and photodetectors portfolio has improved. Additionally, concerns about competition facing the company's QSFP28 optical transceiver are overdone.

Stifel noted that Finisar's margins can also increase beyond the firm's prior estimates.

Additionally, Needham upped its price target to $28 from $24 and maintained a "buy" rating on the stock today.

The firm expects results to beat expectations driven by strong 100G, better-than-expected 10G/40G fiber optic products and stronger telecom, the Fly noted.

Wall Street is forecasting that the Sunnyvale, CA-based fiber optic solutions provider will report earnings of 30 cents per share on revenue of $332.75 million.

During the same period a year ago, Finisar earned 23 cents per diluted share on revenue of $314.03 million.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.

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