Jefferies analyst George Notter reiterated a Buy rating on Infinera (NASDAQ: INFN) today and set a price target of $18. 

Notter wrote, “The Q1 print (and Q2 guidance) were disappointing in our view – particularly the reduction in June expectations associated with a particular Transmode customer. While we still like Infinera’s business longer term, it’s apparent they have lower near-term visibility of business than we previously thought. Spoiled Lingonberries… We Can’t Pay the Same Multiple Anymore. Infinera printed an in-line March quarter and guided for Q2 results below consensus. The most significant component of the reduced expectations comes from a single customer situation on the Transmode side of the business. Slower-than-expected cross-selling opportunities with Transmode are also a new concern. On the positive side, the Long Haul and Cloud Xpress pieces of the business seem to be performing well. Moreover, the strategic rationale behind the company’s purchase of Transmode and their entry into the Metro DCI market remains very much intact. We remain encouraged on these fronts. We’re adjusting our Price Target from $22.50 to $18.00.”