Why Infinera Stock Popped Today

Shares of Infinera (NASDAQ: INFN) have popped today, up by 10% as of 12:10 p.m. EDT, following an analyst report that suggested that telecommunications giant Verizon (NYSE: VZ) is testing the company's 800G technology for a potential upgrade. Needham reiterated a strong buy rating on Infinera stock and $12 price target.

Analyst Alex Henderson says that Big Red is testing Infinera's 800G ICE6 offerings for its long-haul communications network. Henderson cautions that "a test of the technology is not a win, yet," but Infinera could potentially supplement existing supplier Ciena. Verizon confirmed to Light Reading last week that it had successfully tested a deployment between Dallas and Atlanta using Infinera equipment.

Infinera also currently supplies XO Communications, which could be an inroad to expanding its relationship with Verizon, which closed its acquisition of XO's fiber business in 2017.

Source Fool.com