- II-VI shares have been weak despite a respectable FYQ4 and guidance, with investors increasingly worried about near-term trends in metro optical and high-end data center deployments.
- II-VI does have some near-term risk to weaker optical demand, but that's overshadowed by strong opportunities in 100G data center and upcoming ramps in 400G, SiC, 3D sensing, and 5G.
- Going up the stack in SiC, adding chip, device, and module capabilities carries some risk, but it also greatly expands the addressable market.
- If II-VI can drive mid-to-high single-digit revenue growth and couple that with strong margin leverage, these shares are substantially undervalued today.
For further details see:
II-VI Seeing Expanding Opportunities And Shrinking Valuations On Optical Sector Worries