
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet has demonstrated significant success in acquiring new Systems customers by integrating optic component production with systems manufacturing, leading to cost efficiencies and enhanced performance. The company is anticipated to benefit from a resurgence in its Datacom segment, with strong shipments expected in the June quarter, positioning it for long-term growth that is expected to outpace competitors in the contract manufacturing services (CMS) sector. With superior operational metrics, including operating margins twice that of peers and a strong cash position of $25.68 per share, Fabrinet is well-positioned to enhance its gross and operating margins as utilization rates improve in the coming years.
Bears say
Fabrinet's outlook is negatively affected by anticipated contra-revenues of $4.2 million for the March quarter, leading to an expected earnings per share (EPS) reduction of approximately $0.14 compared to prior guidance. The primary risks include potential pricing pressure and the challenge of achieving productivity gains amid ongoing supply chain difficulties, which, if prolonged, could significantly impact profitability. Additionally, the company's ability to secure timely and sufficient orders may be compromised, posing additional threats to revenue and market share amidst weakening demand conditions.
This aggregate rating is based on analysts' research of Fabrinet and is not a guaranteed prediction by Public.com or investment advice.
Fabrinet (FN) Analyst Forecast & Price Prediction
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