Why Fabrinet Stock Sank Today
(NYSE: FN) stock saw big sell-offs in Wednesday's trading. The engineering and manufacturing specialist's share price closed out the daily session down 9% and had been down as much as 13.6% earlier in the day's trading.
Fabrinet stock lost ground today after B. Riley downgraded its rating on the stock from neutral to sell. The firm also lowered its one-year price target on the stock to $178 per share, down from its previous target price of $194 per share. Based on today's closing price, B. Riley's new price target on the stock suggests potential downside of 21%.
B. Riley's analysts anticipate that Fabrinet's business will soon see headwinds stemming from weakening traction for product bundles sold in conjunction with Nvidia's graphics processing units (GPUs). The artificial intelligence (AI) leader's GPUs have been in very high demand, and tech components from third parties including Fabrinet have also been bundled with the advanced processors.
Source Fool.com
Fabrinet Stock
With 16 Buy predictions and not the single Sell prediction the community is currently very high on Fabrinet.
With a target price of 463 € there is a slightly positive potential of 18.17% for Fabrinet compared to the current price of 391.8 €.
