Morgan Stanley Reiterates Equal-Weight On Fabrinet (FN)

Morgan Stanley maintained its Equal-weight rating on Fabrinet (NYSE: FN) in a research report published today.

In the report, Morgan Stanley states, "We believe FN remains well positioned as essentially the only player in the high complexity EMS segment and should therefore benefit from growth in optical; near-term we believe the inventory overbuilds could take 2-3 qtrs to correct. Long-term, we continue to expect the fundamentals of the optical business to remain intact, and augmented by the push into Laser/Sensor, FN remains well positioned to take increased share of R&D spend amongst its customers. Remain Equal-weight.

In yesterday's trading, Fabrinet's shares lost 0.69% of their value to close at $22.89, above Morgan Stanley's target price of $21.50.