NeoPhotonics shares continue to rise
The analysts issued their refreshed view on NeoPhotonics, a note that painted a rosy picture of the future of optoelectronics industry, where NeoPhotonics is a player. Specifically regarding NeoPhotonics, Needham analysts raised their price target on the shares of the company to $18 from $17. If you compare the new price target and the price at which shares of NeoPhotonics are currently trading, you see that the new target price implies a nearly 40% upside potential.
If the stock attains that target price, it would be a major gain for long-term shareholders in the company considering that the shares of NeoPhotonics are already up more than 42% over the last one year and up nearly 21% YTD.
What has changed at NeoPhotonicsThe question on your mind now is: what is the underlying cause for the price target and ratings tweaks regarding NeoPhotonics? According to Needham, its analysis of the optoelectronics industry has made it believe that there is a major positive cycle in the offing for players in the industry.
The research firm pointed out that the proliferation of data centers, the rise of metropolitan networking and similar developments around the world will contribute enormous demand for fiber optic products. As much, a demand boom is awaiting NeoPhotonics and its peers.
