- Needham & Company maintains a Buy rating on Acacia Communications (NASDAQ:ACIA) but lowers the price target by $15 to $50 due to last week’s negative Q2 preannouncement.
- Analyst Alex Henderson says the miss wasn’t surprising due to May’s announced board production issue and Q3 revenue guidance was better than expected.
- Henderson notes that three quarters of reduced estimates will nonetheless cause “damage to investor perceptions.”
- Analyst lowers guidance: CY17 revenue to $410M (was $419M) and EPS to $1.80 (was 2.07) and CY18 revenue to $471M (was $516M) and EPS to $2.39 (was $2.83).
- Meanwhile, Cowen reiterates an Outperform rating on Acacia but cuts the price target from $66 to $57.
- Analyst Paul Silverstein sees an attractive risk reward in the long term and thinks the pullback provides a buying opportunity.
- Previously: Acacia Communications -6.1% as preliminary Q2 misses (July 14)
- Now read: Don't Count Out Acacia Stock Just Yet
Original article