Based on the analysis of Fabrinet's (FN) recent performance and market trends, the stock presents a balanced outlook with growth potential offset by external risks. Hold FN stock as its strong earnings and analyst support are countered by AI and supply chain challenges.

What is price prediction 2025 for FN Stock?

Based on the analysis of Fibonacci levels and recent earnings performance, FN stock is expected to reach $213 in 2025, driven by strong telecom demand and improved manufacturing efficiency. However, cautious analyst ratings and potential datacom softness could limit upside.

What is surpport and resistant level for FN Stock?

The S1 support level for FN Stock is $181.71 ,The R1 resistant level for FN Stock is $221.41.

What is the current price of FN Stock?

As of the end of day on 2025-03-14, the price of FN Stock was $223.99.

What is the target price of FN Stock?

The target price for FN Stock according to analyst rating is 269.00, with the highest price target at 285.00 and the lowest at 245.00. Analysts have a Moderate Buy rating on FN Stock overall.

What is the market cap of Fabrinet?

The market cap of FN is $7.9B.

Is Fabrinet (FN) overvalued?

Analysis and Insights

To determine if Fabrinet (FN) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

Fabrinet's valuation metrics indicate potential overvaluation:

PE Ratio: The price-to-earnings ratio has increased from 19.3 in Q3 2024 to 24.46 in Q4 2024, suggesting investors are paying more for each dollar of earnings.
EV/EBITDA: The enterprise value-to-EBITDA ratio has risen from 22.86 in Q1 2025 to 24.46 in Q4 2024, indicating a higher valuation relative to earnings.
Price-to-Sales (PS): The PS ratio has increased, reflecting a premium relative to revenue.

Financial Performance:

Revenue Growth: Total revenue has grown steadily, from $731.54 million in Q3 2024 to $833.61 million in Q2 2025, showing strong top-line growth.
Net Income: Net income has remained stable, with slight fluctuations, indicating consistent profitability.
Margins: Gross margin has improved, while net margin remains stable, reflecting efficient operations.

Market Sentiment and Analyst Ratings:

Analyst Sentiment: Analysts maintain a positive outlook, with a price target suggesting a 44% upside, though some note AI stocks may offer better returns.
Fear & Greed Index: The index shows extreme fear, which could contribute to market volatility.

Industry and Economic Factors:

AI Impact: The rise of DeepSeek AI has caused market volatility, with potential valuation compression for suppliers like Fabrinet due to reduced costs in AI training and inference.
Supply Chain Risks: As a supplier to companies like Nvidia, Fabrinet may face headwinds if orders are cut, impacting its valuation.

Conclusion:

Fabrinet's rising valuation metrics and exposure to AI-related risks suggest it may be overvalued. While its financials are strong, investors should exercise caution due to potential industry shifts and market volatility.

What is Fabrinet (FN)'s business?

Fabrinet is a provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products. The complex products include optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers, and sensors. The Company offers a range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly, and testing. It focuses on production of high complexity products in any mix and any volume. The Company also designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).

What is price prediction 2030 for FN Stock?

Price Prediction for Fabrinet (FN) Stock in 2030

Fabrinet (FN) is expected to reach a stock price of $280 by 2030, driven by its strong position in optical communications and manufacturing services. The company's focus on high-precision components for industries like telecom and datacom positions it well for long-term growth. Analysts maintain a positive outlook, with a 44% upside potential from current levels.