Fabrinet (NYSE:FN) Upgraded to Overweight at Fox Advisors

Key Points

• Fox Advisors upgraded Fabrinet to “overweight” from “equal weight.” The stock has a “Moderate Buy” consensus rating, with six Buy and four Hold ratings and a consensus price target of $649.50.
• Fabrinet reported quarterly EPS of $4.10 and revenue of $1.32 billion, beating analyst estimates, while revenue increased 44.6% year over year. Management issued fiscal Q1 2027 EPS guidance of $4.10–$4.25.
• Despite strong AI and data-center demand, investors remain concerned about rising capital expenditures, higher inventory, sharply lower free cash flow and softer margins. The stock is down 19.7% and faces risks from customer concentration and potential weakness in data-center spending.

Fabrinet (NYSE:FN - Get Free Report) was upgraded by research analysts at Fox Advisors from an "equal weight" rating to an "overweight" rating in a research note issued on Wednesday, Marketbeat.com reports.

Several other equities research analysts also recently commented on FN. Wall Street Zen lowered shares of Fabrinet from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $650.00 price objective on shares of Fabrinet in a research note on Tuesday. Barclays lifted their target price on Fabrinet from $702.00 to $739.00 and gave the stock an "overweight" rating in a report on Tuesday. Weiss Ratings cut Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, August 12th. Finally, Zacks Research downgraded Fabrinet from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Six investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $649.50.

Fabrinet Stock Down 19.7%

NYSE:FN opened at $480.36 on Wednesday. Fabrinet has a 12-month low of $272.49 and a 12-month high of $748.89. The stock's fifty day simple moving average is $524.36 and its 200-day simple moving average is $569.25. The firm has a market capitalization of $17.21 billion, a P/E ratio of 36.81 and a beta of 1.23.

Fabrinet (NYSE:FN - Get Free Report) last released its earnings results on Monday, August 17th. The technology company reported $4.10 earnings per share for the quarter, beating the consensus estimate of $3.81 by $0.29. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.28 billion. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.The company's quarterly revenue was up 44.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.65 earnings per share. Fabrinet has set its Q1 2027 guidance at 4.100-4.250 EPS. As a group, equities research analysts expect that Fabrinet will post 16.46 earnings per share for the current year.

Insider Activity

In related news, Director Homa Bahrami sold 2,500 shares of Fabrinet stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $711.91, for a total value of $1,779,775.00. Following the sale, the director owned 16,233 shares of the company's stock, valued at approximately $11,556,435.03. This trade represents a 13.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.24% of the company's stock.

Institutional Trading of Fabrinet

Hedge funds and other institutional investors have recently made changes to their positions in the business. Core Wealth Advisors LLC bought a new position in Fabrinet in the fourth quarter valued at $25,000. Cassaday & Co Wealth Management LLC bought a new stake in Fabrinet during the 1st quarter worth about $31,000. Harbour Investments Inc. lifted its position in Fabrinet by 75.0% during the 4th 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. Creative Financial Designs Inc. ADV acquired a new position in shares of Fabrinet during the 4th quarter worth about $32,000. Finally, Quarry LP boosted its stake in shares of Fabrinet by 300.0% during the 4th quarter. Quarry LP now owns 72 shares of the technology company's stock worth $33,000 after buying an additional 54 shares during 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: Fabrinet reported record fourth-quarter revenue of $1.316 billion, up 45% year over year, while non-GAAP EPS of $4.10 exceeded consensus expectations. Fiscal 2026 revenue rose 36% to $4.64 billion, and annual non-GAAP EPS increased to $14.09. Fabrinet quarterly earnings report
• Positive Sentiment: Data-center revenue surged 68%, reportedly pushing data-center interconnect sales above a $1 billion annualized run rate. Management cited strong demand, new transceiver ramps and additional capacity as drivers of continued growth in fiscal 2027. Fabrinet Q4 earnings and data-center growth
• Positive Sentiment: Fiscal first-quarter guidance was above analyst expectations, with revenue projected at $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25. Rosenblatt and Needham reaffirmed Buy ratings, while JPMorgan raised its price target to $695. Analyst forecasts following Fabrinet results
• Neutral Sentiment: The results reinforce Fabrinet’s growing exposure to AI infrastructure customers, including Cisco, Nvidia, Amazon and Nokia, but also highlight concentration and execution risks if data-center spending or customer demand slows. Fabrinet AI infrastructure customers
• Negative Sentiment: Investors were concerned that capital expenditures jumped to approximately $252.5 million, reducing fiscal-year free cash flow to just $4.2 million from $207.3 million. Inventory also increased to roughly $1.02 billion, and new borrowing by a Thai subsidiary raised concerns about working-capital needs and financing risk. Fabrinet cash flow and inventory analysis
• Negative Sentiment: Quarterly margins were viewed as softer than expected, while reports of weakness in Nvidia’s datacom business overshadowed strength in telecom. The selloff also spread across optical and AI hardware peers amid a broader risk-off market environment. Fabrinet shares and Nvidia datacom weakness

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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