Fabrinet price target raised to $240 from $230 at JPMorgan

JPMorgan analyst Samik Chatterjee raised the firm’s price target on Fabrinet to $240 from $230 and keeps a Neutral rating on the shares. The analyst says shares of hardware and networking companies’ with leverage to artificial intelligence infrastructure investments continue to outperform the broader group on a year-to-date basis. The firm does not see the broader concern expressed by investors to be reflective of underlying demand in the near- to medium-term drivers, saying optical demand related to data centers will continue to be supported by “robust” capex plans from hyperscalers and recent stabilization of telecom demand will limit further downsides to revenue.