Morgan Stanley Assumes Coverage Of FN

Morgan Stanley is assuming coverage of Fabrinet (NYSE: FN) from its Asian colleagues, maintaining our Equal-weight rating, and updating our estimates for FQ2 actuals resulting in a new base case of $21.50.”

“While 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, we now expect the next 1-2 quarters to be rocky given the inventory concerns first highlighted by FNSR last week.”

Fabrinet closed Tuesday at $21.05.