Citibank raises target price for NeoPhotonics by nearly double, expects global optical interconnection market to grow at a rate of 65% over the next three years.

Citi raised the target prices for Neophotonics, Dongshan Precision, and Tianfu Communication, stating that the overall market size of the global optical interconnect industry may reach $92 billion by 2028, with a compound annual growth rate of 65% over the next three years. Analysts at Citi, including Kyna Wong, mentioned in their report that during this period, due to technological upgrades, the compound annual growth rate of average selling prices is expected to reach 18%. The target price for Neophotonics has been raised by about 98% to $701, benefiting from 3.2T/NPO technology evolution; the target price for Dongshan Precision has been raised by about 56% to $350, as the company is expected to increase its market share in the optical chip/optical module sector; the target price for Tianfu Communication has been raised by about 32% to $419, as the core beneficiary of CPO; the rating for Taichen Optoelectronics has been downgraded from Buy to Sell, mainly due to the risk of decoupling from Corning and the current overvaluation.