RBC Has 5 Optical and Network Stocks That May Be Takeover Targets


This stock was hit hard recently and may be offering a very good entry point for investors. Finisar Corp. (NASDAQ: FNSR) provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China and elsewhere.

The company’s optical subsystems primarily consist of transmitters, receivers, transceivers, transponders and active optical cables that provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in communication networks, including the switches, routers and servers used in wireline networks, as well as the antennas and base stations used in wireless networks.

The company also offers wavelength selective switches, which are used to switch network traffic from one optical fiber to multiple other fibers without converting to an electronic signal. In addition, it provides optical components comprising packaged lasers, receivers and photodetectors for data communication and telecommunication
applications, as well as passive optical components for telecommunication applications.

The consensus price objective of $21.32 compares with last Friday’s closing price of $18.07 a share. The 52-week range is $16.64 to $29.07.


This company has made the RBC list before and again is a possible takeover candidate. Netgear Inc. (NASDAQ: NTGR) designs, develops and markets networking solutions and smart connected products for consumers, businesses and service providers. The company’s product line consists of devices, such as network attached storage, internet protocol security cameras and home automation devices and services.

Netgear’s segments include retail, commercial and service provider. The retail business unit is focused on individual consumers and consists of whole-home wireless fidelity (Wi-Fi) networking solutions and Smart connected products.

The commercial business unit is focused on small and medium-sized businesses and consists of business networking, storage and security solutions. While the service provider business unit is focused on the service provider market and consists of made-to-order and retail-proven whole home networking hardware and software solutions, including fourth-generation (4G) long-term evolution (LTE) hotspots sold to service providers for sale to their subscribers.

The posted consensus target was last seen at $75.50. The share price on Friday’s close was $59.15, in a 52-week trading range of $41.50 to $71.42.

Verint Systems

This company has been a part of takeover chatter over the past year. Verint Systems Inc. (NASDAQ: VRNT) is a provider of customer engagement software and services that can be deployed on-premises or in the cloud. It delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions and Cyber Intelligence Solutions. Its Customer Engagement vision is powered by its Actionable Intelligence platform to generate intelligence from structured and unstructured data.

Verint Systems offers solutions that help organizations empower their customers and employees through intelligence that can be shared enterprise-wide. It is a provider of security and intelligence data mining software. Its solutions are used for a range of applications, including predictive intelligence, advanced and complex investigations, security threat analysis and electronic data and physical assets protection, as well as for generating legal evidence and preventing criminal activity and terrorism.

The Wall Street consensus price target is posted at $48. The shares closed Friday at $39.45, in a 52-week range of $37.05 to $44.70.

While there is absolutely no guarantee that these companies are acquired, they all are outstanding stocks to own in aggressive growth portfolios on their own. The buyout factor just gives them another reason to be considered.

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