NPTN - NeoPhotonics gains after Needham upgrade on optical market recovery

Citing accelerating growth and an attractive valuation, Needham upgrades NeoPhotonics (NPTN) from Hold to Buy with a $9 price target.Analyst Alex Henderson says the Q3 results ""cleared out" a lot of NPTN's risks and "provided a gross margin baseline and a trajectory back to profitability."The analyst thinks the optical market is "at a cyclical trough" and headed for a 2021-22 rebound.NPTN shares are up 6.1% pre-market to $7.30.Previously: NeoPhotonics -4.2% as post-Huawei life includes dim Q4 profit guidance (Nov. 02 2020)

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NeoPhotonics gains after Needham upgrade on optical market recovery