Infinera Initiated at Drexel Hamilton @22

http://thefly.com/news.php?symbol=INFN

09:03 Infinera initiated at Drexel Hamilton

Infinera initiated with a Buy at Drexel Hamilton. Drexel Hamilton analyst Greg Mesniaeff initiated Infinera with a Buy rating and $22 price target.

Best,
–Kevin

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Some additional highlights from the Drexel Hamilton initiation:

http://www.benzinga.com/analyst-ratings/analyst-color/16/04/…

Analyst Greg Mesniaeff believes Infinera’s top-line year-over-year growth will exceed 25 percent through 2017, as the company “leverages its superior competitive position and takes advantage of its growing earnings power.”

Mesniaeff, who started coverage of Infinera shares with a Buy rating and a $22 price target, said photonic integrated circuit (PIC) gives Infinera a “significant cost advantage” over many of its peers.

Mesniaeff said PIC is “a proprietary component manufacturing process that yields superior optical and electrical transport capabilities at more attractive cost economics.

In addition, the analyst noted that Infinera is “unique among its peers in that it lacks the burden of a legacy installed base of equipment tied to outdated technologies and standards such as SONET/SDH.”

“We believe that the company continues to hold a defensible position in the market, and will likely enjoy this entry barrier for at least two more years,” Mesniaeff wrote in a note to clients.

Although Infinera is “long viewed as a pure play on Long Haul Wave Division Multiplexing (WDM) optical transmission for telco carriers, the company has recently expanded into the Metro and Data Center (DCI) markets,” the analyst added.

“According to industry researcher Infonetics, the market for metro optical transport now exceeds 50 percent of the entire $12 billion-plus optical transport market, and is poised to exceed $16 billion in 2020.”

I was impressed by the research notes from this analyst and decided to look a little deeper at Drexel Hamilton - a research firm I had never heard of before. I was humbled by what I read about them.

Drexel Hamilton is veteran-owned full-service institutional brokerage. They were founded in 2008 on the principle of offering meaningful employment opportunities to disabled veterans. Below is their mission statement:

“Drexel Hamilton, LLC is committed to developing the best full-service institutional broker-dealer in the market, but most importantly earning the trust of our customers as we demonstrate our commitment to highest standards of Ethics, Morality, and Service.”

Below is their commitment to veterans:

"Drexel Hamilton, LLC has made the following commitments to disabled veterans:

Maintain a concentration of 40 percent or greater veteran employees and 20 percent or greater disabled veteran employees.

Financially and professionally support the training and employment of disabled veterans in the Institutional Financial Services industry.

What they do is prepare disabled veterans for careers in finance. Drexel carves out 20% of their expenses for housing, educating and training these veterans so they may pass regulatory exams. Those that pass are placed for jobs at financial institutions through Drexel. Those that pass but can’t be placed due to other challenges with their disabilities are hired from within.

I was touched by their story. You can read more about Drexel Hamilton here: http://www.nytimes.com/2012/06/17/business/drexel-hamilton-a…

Best,
–Kevin

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Very interesting stuff Kevin. Thank you for continuing to keep us in the know.

I know from following this board that Infinera shares make up about 8 or 9% of Saul’s portfolio. Are you willing to share what percentage it is of your portfolio? If not, no worries.

Thanks,
az5speedy
Long INFN

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