Fabrinet initiated with a Hold at Jefferies

Jefferies initiated coverage of Fabrinet (FN) with a Hold rating and $230 price target. Fabrinet is a contract manufacturer specializing in the optical communications space, the analyst tells investors in a research note. The firm says that while the company’s Nvidia (NVDA) business sets it up for a long runway of future growth, the shares already reflect the upside scenario. Also, there are risks around additional transceivers suppliers getting qualified by Nvidia and/or waning investor enthusiasm for artificial intelligence, according to Jefferies.