Collins Stewart Reiterates Buy, $18 PT on Fabrinet

Collins Stewart remains Buy-rated with an $18 price target on Fabrinet (NYSE: FN) as the company looks to rebound in the March quarter following recovery progress from Thai floods.

Collins Stewart says, "We upgraded the shares back on 11/3, not due to expectations for the Dec. qtr, but from emerging visibility and hope that the recovery process had started. The shares have traded up ~23% since then. We now believe significant progress has been made and the March qtr will be the major transitional time period. While it is difficult to predict revenue, costs & expenses with precision, any near-term hit will likely be made up by the company's insurance policies."

FN closed at $16.47 a share on Tuesday.