Fabrinet price target raised to $290 from $250 at Rosenblatt

Rosenblatt raised its price target on Fabrinet (NYSE: NYSE:FN) stock to $290 from $250 on Thursday, maintaining a Buy rating on the optical manufacturing company. Currently trading at $243.20, Fabrinet maintains a strong financial position with an InvestingPro Financial Health Score of "GREAT," supported by robust cash flows and minimal debt exposure.

The research firm cited Fabrinet’s competitive advantage in optical components and sub-systems manufacturing, noting the company has expanded into adjacent markets including Advanced Packaging (NYSE:PKG) and Optical Systems to drive growth.

Rosenblatt expects Fabrinet’s 800+G sequential growth to accelerate starting in the second half of 2025, driven by Blackwell BG200 and BG300 deployments as the company transitions from 100G per lane VCSEL-based technologies to 200G per lane EML-based 800G and 1.6T solutions in datacom transceivers.

The firm identified additional FY26 catalysts including a new telecom win with Ciena (NYSE:CIEN) and a new high-performance computing win with Amazon (NASDAQ:AMZN) that should further support growth.

Rosenblatt’s new $290 price target represents a multiple of 25 times consensus FY26 earnings per share, reflecting confidence in Fabrinet’s expanding market opportunities and technological positioning.

In other recent news, Fabrinet reported third-quarter earnings that did not meet analyst expectations, with adjusted earnings per share of $2.52 falling short of the forecasted $2.54. However, the company exceeded revenue estimates, posting $871.8 million compared to the anticipated $858.3 million, marking a 19.2% year-over-year increase. Despite the revenue beat, higher costs impacted profitability, leaving investors disappointed. Looking ahead, Fabrinet forecasts fourth-quarter revenue between $860 million and $900 million and adjusted EPS of $2.55 to $2.70, aligning closely with analyst projections.

In another development, Rosenblatt analysts raised Fabrinet’s stock price target to $250 from $230, maintaining a Buy rating, citing confidence in the company’s market share gains and management execution. Meanwhile, JPMorgan adjusted its outlook, increasing the price target to $235 from $220, but retained a Neutral rating, noting mixed performance across different sectors. Additionally, Fabrinet announced the retirement of board member Rollance Olson, effective at the end of his current term in 2025, which will prompt the board to seek a replacement.

On a related note, Innoviz Technologies expanded its Non-Recurring Engineering payment plan to $95 million and partnered with Fabrinet for the mass production of its InnovizTwo LiDAR platform. This collaboration aims to support Innoviz’s production schedules in 2026 and 2027, leveraging Fabrinet’s manufacturing capabilities. These developments reflect ongoing strategic moves by both companies to strengthen their market positions in their respective industries.

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