Why NeoPhotonics Stock Is Down 11% Today
Shares of NeoPhotonics (NYSE: NPTN) fell as much as 14.3% on Wednesday morning, hamstrung by an analyst downgrade. By 2:45 p.m. EDT, the maker of optoelectronic components and modules used in high-speed networking equipment had recovered somewhat to an 11.4% drop.
B. Riley analyst David Kang downgraded NeoPhotonics from buy to neutral, setting his price target at $6.50 per share. Kang cited an uncomfortably high valuation and business uncertainty regarding the ban on doing business with China-based customer Huawei. The stock now trades at 66 times forward earnings.
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Source Fool.com
