Fabrinet (NYSE:FN) Receives Buy Rating from Needham & Company LLC

Key Points

• Needham reaffirmed a Buy rating on Fabrinet and maintained a $650 price target, implying 8.6% upside from the prior close. The broader analyst consensus is Moderate Buy, with an average target of $647.62.
• Fabrinet exceeded quarterly expectations, reporting adjusted EPS of $4.10 versus $3.81 expected and revenue of $1.32 billion versus $1.28 billion. Revenue increased 44.6% year over year, driven in part by strong data-center demand.
• The company’s outlook remains positive, but fiscal Q1 GAAP EPS guidance is lower than adjusted guidance because of an estimated $0.40-per-share Pillar Two tax expense, creating a near-term profitability concern.

Fabrinet (NYSE:FN - Get Free Report)'s stock had its "buy" rating reaffirmed by Needham & Company LLC in a research report issued to clients and investors on Tuesday,Benzinga reports. They currently have a $650.00 target price on the technology company's stock. Needham & Company LLC's price target would indicate a potential upside of 8.60% from the company's previous close.

A number of other research analysts have also weighed in on the stock. Weiss Ratings lowered shares of Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 12th. Barclays reaffirmed an "overweight" rating and issued a $739.00 price target on shares of Fabrinet in a research report on Tuesday. Rosenblatt Securities reiterated a "buy" rating and issued a $750.00 price objective on shares of Fabrinet in a research note on Tuesday. Northland Securities set a $800.00 price objective on Fabrinet in a research report on Monday, April 20th. Finally, JPMorgan Chase & Co. decreased their target price on Fabrinet from $700.00 to $680.00 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $647.62.

Fabrinet Stock Up 5.0%

Shares of FN stock opened at $598.50 on Tuesday. The business's 50 day moving average is $526.47 and its two-hundred day moving average is $569.40. Fabrinet has a 12 month low of $272.49 and a 12 month high of $748.89. The company has a market cap of $21.44 billion, a PE ratio of 51.42 and a beta of 1.23.

Fabrinet (NYSE:FN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 18th. The technology company reported $4.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.81 by $0.29. Fabrinet had a net margin of 9.94% and a return on equity of 19.83%. The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the firm earned $2.65 EPS. Fabrinet's quarterly revenue was up 44.6% compared to the same quarter last year. As a group, equities analysts expect that Fabrinet will post 12.97 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Homa Bahrami sold 2,500 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the completion of the transaction, the director directly owned 16,233 shares in the company, valued at $11,556,435.03. This represents a 13.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.24% of the stock is currently owned by insiders.

Institutional Trading of Fabrinet

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Core Wealth Advisors LLC acquired a new position in shares of Fabrinet during the fourth quarter valued at about $25,000. Harbour Investments Inc. grew its position in Fabrinet by 75.0% during the fourth quarter. Harbour Investments Inc. now owns 63 shares of the technology company's stock worth $29,000 after buying an additional 27 shares in the last quarter. Cassaday & Co Wealth Management LLC bought a new position in Fabrinet during the first quarter valued at about $31,000. Creative Financial Designs Inc. ADV bought a new position in Fabrinet during the fourth quarter valued at about $32,000. Finally, Quarry LP raised its holdings in Fabrinet by 300.0% in the 4th quarter. Quarry LP now owns 72 shares of the technology company's stock valued at $33,000 after acquiring an additional 54 shares in the last quarter. 97.38% of the stock is currently owned by institutional investors and hedge funds.

Key Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Record quarter and full-year growth: Fabrinet reported fourth-quarter revenue of $1.316 billion, up 45% year over year and above its guidance range. Fiscal 2026 revenue rose 36% to $4.64 billion, while GAAP diluted EPS increased to $3.83 from $2.42. Fabrinet Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: AI and data-center demand remains powerful: Data-center revenue surged 68% in the quarter, and CEO Seamus Grady said he sees “no end in sight” to demand. The sustained expansion of AI infrastructure is supporting Fabrinet’s optical packaging and manufacturing businesses. Fabrinet CEO Sees No End in Sight to Data Center Demand
• Positive Sentiment: Non-GAAP earnings exceeded expectations: Adjusted EPS was $4.10 versus the roughly $3.81–$3.85 consensus range, and revenue also topped estimates of approximately $1.28 billion. Fabrinet Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Above-consensus outlook and analyst support: Fabrinet expects fiscal Q1 revenue of $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25, both above consensus. Needham maintained a Buy rating and a $650 price target, citing strong demand and new capacity. Analyst Maintains Buy on Fabrinet
• Negative Sentiment: GAAP guidance created near-term caution: Fiscal Q1 GAAP EPS guidance of $3.39 to $3.54 is below the adjusted range because it includes approximately $0.40 per share of Pillar Two tax expense. The discrepancy prompted some investors to question near-term reported profitability despite the strong operating outlook. Why Fabrinet Is Trending

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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