NPTN - NeoPhotonics -2.4% as low China visibility prompts JPMorgan downgrade

NeoPhotonics (NPTN) is 2.4% lower premarket after a downgrade to Neutral at JPMorgan, pointing to the uncertainty and low visibility in the Chinese market. It's cut its price target to match a Street low of $7, from $12, trimming implied upside to 6%. More than half of the company's revenue last year was tied to Huawei, which has faced numerous U.S. restrictions. And without better visibility into the implications of those regulations, NeoPhotonics' medium-term opportunity is now "murkier," analyst Samik Chatterjee says. Chatterjee is positive on the company's competitive position given its leadership in high-speed coherent ports, along with the potential long-term adoption of coherent technology, but lack of demand visibility puts a limit on the shares. Wall Street analysts are generally Bullish on the stock, while Seeking Alpha authors are Neutral. It has a Quant Rating of Bearish (and is ranked 54th of 63 Semiconductor stocks in Quant Rating).

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NeoPhotonics -2.4% as low China visibility prompts JPMorgan downgrade