The Analyst Verdict: Fabrinet In The Eyes Of 5 Experts

Throughout the last three months, 5 analysts have evaluated Fabrinet FN, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Fabrinet, presenting an average target of $216.4, a high estimate of $230.00, and a low estimate of $200.00. Marking an increase of 1.44%, the current average surpasses the previous average price target of $213.33.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Fabrinet by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Fabrinet. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Fabrinet compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Fabrinet's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Fabrinet's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Fabrinet analyst ratings.

About Fabrinet

Fabrinet is a United States-based company that is principally engaged in providing outsourced manufacturing services to original equipment manufacturers (OEM). These OEM customers are mainly companies in complex industries that require precision manufacturing capabilities. The company offers a wide range of optical and electro-mechanical manufacturing capabilities across the whole producing process. It helps its customers to manufacture various products, such as selective switching products, active optical cables, tunable transponders and transceivers, lasers, and sensors. The company generates the majority of revenue from North America and Asia-Pacific, with the rest from Europe.

A Deep Dive into Fabrinet's Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Fabrinet's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 6.59%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Fabrinet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.7% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Fabrinet's ROE stands out, surpassing industry averages. With an impressive ROE of 4.4%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Fabrinet's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.33% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Fabrinet's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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