Raymond James doesn't think FNSR will capitalize on the upcoming Apple cycle
Options traders have been largely complacent toward optical components stock Finisar Corporation (NASDAQ:FNSR) recently, with the 81,207 contracts currently open docked in just the 14th annual percentile. Today, though, bearish traders are blasting FNSR stock as it sells off following a dismal analyst note.
At last check, 3,861 calls and 1,294 puts have changed hands on Finisar -- nearly four times what's typically seen at this point in the day. Most active are the December 18 and 19 puts, where it looks like new positions are being purchased. If this is the case, speculators are targeting bigger end-of-year losses for the equity.
This skepticism is being shared by Raymond James, too, which downgraded FNSR stock to "market perform" from "outperform" earlier. The brokerage firm cited expectations for short-term headwinds -- including reduced exposure to China -- and said Finisar will likely miss out on the upcoming Apple (AAPL) cycle.
In reaction, FNSR shares are down 4.2% to trade at $18.78, on track for its lowest close since Aug. 15. Just yesterday, the stock was swiftly rejected just below the round $20 level, and remains more than 21% lower on a year-over-year basis.
Should the shares continue to struggle, there's plenty of room for more analysts to lower their outlooks on FNSR. At last night's close, the majority of brokerages covering Finisar maintained a "buy" or better rating, with not a single "sell" on the books. Plus, the average 12-month price target of $21.09 is a healthy 12% premium to current trading levels.