Keeley Teton Comments on Infinera

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Sydnee Gatewood
Jun 11, 2021

Summary

  • Stock was a leading detractor.
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Infinera Corporation (

INFN, Financial) designs and builds network equipment for optical transport, which is thehigh-speed transmission of data in the form of light waves. After exiting the year near the high mark of three years ago, the stock traded o modestly in an up market as investor preferences shifted away from names deemed to be early beneficiaries of the pandemic. While remote-working trends certainly boosted demand for networking equipment, the company has gained ground against ambitious gross margin leverage targets set at the time of the Coriant acquisition. We still believe the stock has further upside as end market trends remain in place, credible competitive threats have narrowed, and the company continues to have operating leverage potential.

From Keeley Teton Small Cap Select Value Fund's first-quarter 2021 commentary.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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