Rosenblatt raised its price target on Fabrinet (NYSE:FN) to $290 from $250 while maintaining a Buy rating, citing the company’s expanding expertise and growing opportunities in high-speed optical and advanced packaging markets.
The analysts noted that Fabrinet’s core strength lies in its deep manufacturing capabilities for optical components and subsystems. The company is now capitalizing on adjacent opportunities, including Advanced Packaging and Optical Systems, to broaden its total addressable market and support continued growth.
In particular, Fabrinet is transitioning from 100G-per-lane VCSEL-based technologies to 200G-per-lane EML-based 800G and 1.6T transceiver solutions—an upgrade expected to gain momentum in the second half of calendar year 2025 as NVIDIA’s Blackwell BG200 and BG300 architectures ramp up. Additional growth catalysts for fiscal year 2026 include a new telecom deal with Ciena and a high-performance computing (HPC) win with Amazon.