Evaluating Infinera: Insights From 7 Financial Analysts

Analysts' ratings for Infinera INFN over the last quarter vary from bullish to bearish, as provided by 7 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $7.51, a high estimate of $10.00, and a low estimate of $6.65. Highlighting a 12.98% decrease, the current average has fallen from the previous average price target of $8.63.

Interpreting Analyst Ratings: A Closer Look

The standing of Infinera among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Infinera. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Infinera compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Infinera's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Infinera's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Infinera analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

About Infinera

Infinera Corp is a global supplier of networking solutions comprised of networking equipment, software and services. Its portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, compact modular platforms, optical line systems, coherent optical subsystems, a suite of automation software offerings, and support and professional services. The company's customers include operators of fixed line and mobile networks, including telecommunications service providers, internet content providers, cable providers, wholesale carriers, research and education institutions, large enterprises, utilities and government entities.

Infinera's Economic Impact: An Analysis

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Infinera's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -21.72%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Infinera's net margin excels beyond industry benchmarks, reaching -20.0%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Infinera's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -32.47%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Infinera's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.78%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 4.6, Infinera faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.