Here's What Barclays Has to Say About ​Fabrinet (FN)

​Fabrinet (NYSE:FN) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 16, William O’Neil initiated the stock with a Buy rating but did not disclose any price targets. Earlier, on January 13, Tim Long from Barclays upgraded Fabrinet (NYSE:FN) from Hold to Buy and also raised the price target from $499 to $537.

​Tim Long noted that the upgrade and the higher price target on the stock are based on the firm’s updated outlook. The firm sees Fabrinet (NYSE:FN) as having the highest revenue upside in the distributor space in 2026. The analyst noted that the company is one of Nvidia’s major suppliers. Moreover, Long also acknowledged that while the transition to 1.6T has been slow, it is expected to pick up pace in 2026.

​Earlier on December 15, Susquehanna also initiated coverage on Fabrinet (NYSE:FN) with a Buy rating and a $550 price target. The firm noted that the company benefits from its strong position in the optical networking market. The firm added that the company has also benefited from the inflection in transceiver demand in data centers.

​Fabrinet (NYSE:FN) provides advanced optical packaging and precision manufacturing services for complex products like optical communication components, automotive parts, industrial lasers, medical devices, and sensors.

While we acknowledge the potential of FN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.