Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of optical component vendor Finisar (FNSR) popped 10% today after Wall Street firm Lazard upgraded the stock from "neutral" to "buy."
So what: Along with the upgrade, Lazard planted a $17 price target on the stock, representing 35% worth of upside to yesterday's close. The stock has been beaten down over the past few months on competitive concerns and a weak earnings report, but Lazard thinks the risk/reward trade-off at this point is too tasty to pass up.
Now what: Fools know to take Wall Street opinions with a grain of salt, but the stock seems worth looking into. While the steadily growing adoption of Intel's silicon photonics solution is certainly cause for concern, Finisar's rock-solid balance sheet of roughly $225 million in net cash should give management some flexibility in dealing with the threat. More importantly, with the stock still off about 30% from its 52-week highs and trading at a forward P/E of 14, the downside already seems limited.
Interested in more info Finisar? Add it to your watchlist.