Analysts cut Acacia price targets after negative preliminary results

|About: Acacia Communications (ACIA)|By:, SA News Editor

Needham & Company maintains a Buy rating on Acacia Communications (NASDAQ:ACIA) but lowers the price target by $15 to $50 due to last week’s negative Q2 preannouncement. 

Analyst Alex Henderson says the miss wasn’t surprising due to May’s announced board production issue and Q3 revenue guidance was better than expected. 

Henderson notes that three quarters of reduced estimates will nonetheless cause “damage to investor perceptions.” 

Analyst lowers guidance: CY17 revenue to $410M (was $419M) and EPS to $1.80 (was 2.07) and CY18 revenue to $471M (was $516M) and EPS to $2.39 (was $2.83). 

Meanwhile, Cowen reiterates an Outperform rating on Acacia but cuts the price target from $66 to $57. 

Analyst Paul Silverstein sees an attractive risk reward in the long term and thinks the pullback provides a buying opportunity. 

Previously: Acacia Communications -6.1% as preliminary Q2 misses (July 14)