Fabrinet provides manufacturing services for optical networking gear, industrial lasers and sensors.

The company priced their IPO last night at $10 - a substantial discount to the $12-14 filing range.

A fairly conservative run through our Intrinsic Value model for FN suggests the shares are worth $15. Better revenue growth can drive a $16-17 IV.

It's a Morgan Stanley/Deutsche deal with RBS/Weisel/Cowen also on the cover. Here are the key points on the deal beyond valuation:

  • Fairly large (~$500M) business that has significant barriers to entry. Company has over . . .

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