Fabrinet

Fabrinet

Fabrinet (FN) is a precision contract manufacturer specialising in complex optical, electro-mechanical and electronic assemblies for customers in telecommunications, medical, industrial and automotive markets. Headquartered in Thailand, the company combines cleanroom manufacturing, precision optical packaging and assembly services to serve major original equipment manufacturers (OEMs). Key drivers include demand for high-performance optical modules, medical devices and other specialised products where quality and scale matter. Investors should note revenue can be lumpy because of customer concentration and cyclical end-markets, and the business is sensitive to supplyโ€‘chain constraints and capital expenditure to expand capacity. Historically Fabrinet has delivered attractive gross margins for a contract manufacturer, but future performance will depend on customer wins, industry cycles and execution. This summary is educational only and not personalised investment advice; values can rise and fall and past performance is not a reliable indicator of future results. Consider suitability and diversification before investing.

Stock Performance Snapshot

Buy

Analyst Rating

Analysts recommend buying Fabrinet's stock with a target price of $509.29, indicating growth potential.

Above Average

Financial Health

Fabrinet is performing well with solid revenue and cash flow, although profit margins are relatively low.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

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Published: August 5, 2025

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Broadband Backbone Builders

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Amphenol's $10.5 billion acquisition of CommScope's broadband and cable unit marks a major consolidation in the telecommunications hardware sector. This deal spotlights an investment opportunity in companies providing the essential physical components, like fiber optics and connectors, that form the backbone of 5G and future network infrastructure.

Published: August 4, 2025

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Powering The iPhone: Apple's Supply Chain

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Following Apple's record-breaking revenue announcement, there's a clear investment opportunity in the companies that form its extensive global supply chain. This theme focuses on the key suppliers of components for the iPhone and Mac, who are poised to benefit from the tech giant's continued growth and production demands.

Published: August 3, 2025

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Powering The iPhone: Apple's Supply Chain Partners

Powering The iPhone: Apple's Supply Chain Partners

Apple's recent record-breaking revenue highlights the success of its strategic supply chain diversification. This creates a compelling investment opportunity in the key component and manufacturing partners that are essential to Apple's production ecosystem.

Published: August 1, 2025

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Post-Merger Network Shakeup

Post-Merger Network Shakeup

A carefully selected group of companies positioned to benefit from HPE's $14 billion acquisition of Juniper Networks. This merger creates a powerful new player in AI-native networking, challenging industry leader Cisco and sparking innovation across the entire data center ecosystem.

Published: July 2, 2025

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Why Youโ€™ll Want to Watch This Stock

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Optics and Medical Demand

High-performance optical modules and medical devices can drive growth, though sales may be cyclical and linked to a few large customers.

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Global Manufacturing Footprint

Operations in Thailand with global customers provide scale advantages, but expose the firm to geopolitical and supplyโ€‘chain risks.

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Execution and Margins

Fabrinet's engineering capabilities support healthy margins for complex work, yet maintaining margins depends on execution, pricing and capital investments.

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