Citi has initiated coverage on Innolight’s H shares, listed as 03308.HK, with a Buy rating and a target price of HK$1,524. The bank said the target is based on 16.2x projected 2027 price-to-earnings. In its note, Citi forecast compound annual growth rates of 129% for revenue and 149% for net profit from 2025 to 2028. The bank tied that outlook to strong demand for AI optical communications, bandwidth upgrades, rapidly expanding production capacity, a better product mix, rising adoption of silicon photonics, and operating leverage. Citi also said Innolight’s broad product portfolio, scalable manufacturing capacity, advances in technology and research and development, a flexible and resilient supply chain, and established ties with leading global cloud service providers and AI customers should support its position in the AI era. The report was cited by Odaily, referencing Jin10.
Odaily reported that Citi has initiated coverage on Innolight’s H shares (03308.HK) with a Buy rating and a target price of HK$1,524.
The bank said the target is based on 16.2x projected 2027 price-to-earnings.
Citi sets out growth forecasts
Citi expects Innolight’s revenue and net profit to post compound annual growth rates of 129% and 149%, respectively, from 2025 to 2028.
According to the note, that outlook is supported by strong demand for AI optical communications, bandwidth upgrades, rapidly rising capacity, product mix improvement, higher adoption of silicon photonics, and operating leverage.
Factors cited in the report
Citi said Innolight’s broad product portfolio, scalable production capacity, leading technology progress and R&D capabilities, flexible and resilient supply chain, and solid relationships with leading global cloud service providers and AI customers should support its leading position in the AI era.
The item was attributed to Jin10 in Odaily’s brief.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
