Alliance Fiber Optic: Color on quarter -- Needham (18.31 )
Needham reits Buy on AFOP after earnings last night and raises its tgt to $23 from $22 to reflect the increasing ests and improving visibility. Firm believes that by anyone's metrics these were superb results. Co saw strength at key Web 2.0 Top customer. AFOP's top customer increased from 18% to 41% of revs. While this represents some customer concentration risk, firm strongly believes they are expanding within this customer's footprint and have become part of the reference design for scaled-out data center builds.
Firm believes AFOP is well positioned to continue to beat ests in coming quarters and firm believes the conservative guidance is serving the co well
$18.36, Buy; $22.00 PT): Solid 1Q/2Q Results/Guide; Raising Estimates and PT from $20.00 to $22.00; Maintain Buyl.