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Here's Why Shares of Oclaro Were Higher in Monday's Trading Session

Shares of optical-components manufacturer Oclaro were higher Monday after Jefferies initiated coverage of the stock.

Jefferies analysts said they believe San Jose -based Oclaro (OCLR) - Get Report stands to gain from strong demand across the industry over the next couple of years. The firm initiated coverage with a BUY rating and $11.25 price target. Potential demand drivers could include Verizon's'metro 100G deployment in the U.S., increasing network buildup in China, as well as what Jefferies calls "robust" growth across data centers. Jefferies also highlighted the firm's ability to pay down debt, helping Oclaro build a more sustainable balance sheet.

This article was written by a staff member of TheStreet.

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