Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Finisar Has Room To Run On Data Center And Telecom Upgrades

Optical components supplier Finisar (NASDAQ:FNSR) has a lot going for it. The company has leading share in the $6 billion-plus optical components market and good technology in attractive markets like 10G/40G/100G transceivers and transponders, tunable XFP, and WSS/ROADM. What's more, with a significant data center switch upgrade cycle and ride-along potential in telecom with clients like Cisco (NASDAQ:CSCO) and Huawei, growth over the next few years ought to be good.

The real question for Finisar is whether a reader is comfortable buying a stock that is highly unlikely to be a good long-term holding. Consistent revenue and FCF growth in this market has been all but impossible, and threats like silicon photonics loom on the...

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