3/25/2014 S&P MarketScope, Views and News
11:28 am ET …
ALLIANCE FIBER OPTIC PRODUCTS INC.
INITIATED WITH BUY, $22 TARGET AT NEEDHAM…
Analyst Alex Henderson tells salesforce his buy rating is
heavily predicated on co.'s growing business in the Data
Comm market.
Says he acknowledges that this opportunity is
currently focused on one main customer (which he believes is
Google) that accounted for 35.2% of revenue for 2013, as compared to
just 10% in the prior year. Says this accounted for bulk of
AFOP’s revenue growth in 2013, but even excluding this
top-customer, revs increased 16%.
Expects double-digit revenue growth with expanding margins, valuations, in 2014 and 2015.