This stock is another solid play for investors in data networking. Infinera Corp. (NASDAQ: INFN) provides Intelligent Transport Networks for network operators, enabling reliable, easy to operate, high-capacity optical networks. Infinera leverages its unique large-scale photonic integrated circuits to deliver innovative optical networking solutions for the most demanding network environments. Intelligent Transport Networks enable carriers, cloud network operators, governments and enterprises to automate, converge and scale their data center, metro, long-haul and subsea optical networks.
The Deutsche Bank team noted the stock outperformance this year to peers and attributed the strength to exposure to faster-growing Web 2.0 and cloud 100G+ optical interconnect markets. They also spent time recently with the chief executive and the chief financial officer at the firm’s headquarters, where the tone from the top was positive and near-term demand trends were solid.
The Deutsche Bank price target is $25, and the consensus target is $24.50. The stock closed most recently at $20.85.
This stock has been on fire and could be poised to go higher. Infoblox Inc. (NYSE: BLOX) delivers automated network control solutions, the fundamental technology that connects end users, devices and networks. These solutions enable approximately 7,100 enterprises and service providers to transform, secure and scale complex networks.
The company recently unveiled Infoblox Internal Domain Name System for DNS Security, the most comprehensive solution from a single vendor for securing DNS inside enterprise networks. Infoblox Internal DNS Security is a hardened DNS appliance that turns the internal DNS server from a vulnerability into a strength by providing protection against exploitation of DNS for infrastructure attacks, malware, advanced persistent threats and data exfiltration via DNS.
The Deutsche Bank team reports that the April quarter had the largest number of large enterprise new customer additions, in the company’s view. New customers being added is a key leading indicator in the analyst’s view of the company’s overall order book visibility and the fundamental basis for accelerating revenue growth trends, as they move into the next fiscal year.
The Deutsche Bank price target is posted at $32, and the consensus objective is $29.31. The shares close trading on Tuesday at $26.04.
The Deutsche Bank recommendations are the right tech stocks in the hottest and most in-demand area of technology. Internet media consumption is up 105% since 2010, while every other media outlet is down. Streaming, security and networks are huge, and they will remain that way for the foreseeable future.
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