Shares of JDS Uniphase (JDSU) are up 37 cents, or 2.7%, at $14.16 after the shares this morning were raised to Outperform from Neutral by Credit Suisse’s William Stein, who writes that the company’s margin could get a boost from its test equipment and optical component segments, as well as some of the more obscure business segments, such as fiber lasers and color shifting inks and “gesture recognition.”
Stein raised his price target to $17 from $15.
JDS’s analyst day takes place next Thursday, February 16th, at the W Hotel in San Francisco. Stein expects there to be greater clarity on some margin issues.
JDSU�s 20-23% OPM target in its CommsTest business has stood out as both optimistic and lacking a well defined plan articulated by management. More recently the company�s 16- 20% OPM target in its CCOP segment also looks questionable given recent lower results.
Stein raised his calendar 2013 EPS estimate to $1.13 from $1.02, above the $1.05 consensus.
Another catalyst for the stock is the Optical Fiber Conference in Los Angeles on March 5th.
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