The U.S. Department of Commerce on Monday banned the sale of spare parts by the company to ZTE within seven years because the company violated an agreement reached with the U.S. government after it was found to have illegally sold the goods to Iran. The U.S. government’s move prompted investors to rush to judge Which U.S. companies are losing business.
Shares of Acacia Communications Inc (ACIA.O) rose 3.1% to close at $26.43 on Tuesday, but there is still a long distance from Friday's closing price of $40.03. ZTE Corporation is a major customer of the company. Oclaro Inc (OCLR.O) Tuesday Closed up 5.0%.
'If other customers can make up for it, the impact of ZTE's 'losing' business may not be permanent,' Bernstein analyst Stacy Rasgon wrote, 'but of course there will be some impact in the short term,' and US-China trade The dispute may escalate.
The stocks recommended by Piper/Jensen analyst Troy Jensen include Oclaro and Lumentum Holdings Inc (LITE.O) because both are suppliers of Huawei's 'HWT.UL', a ZTE rival. 'We believe that ZTE's ban will cause Huawei to The customer's increase,' he said in the report.
Jun Zhang, an analyst at Rosenblatt Securities, said telecommunication equipment maker FiberHome Communications (600498.SS) may also benefit from the suspension of ZTE.
Analysts said that ZTE's NeoPhotonics Corp (NPTN.N), Inphi Corp (IPHI.N) and Finisar (FNSR.O) have large customer bases and can absorb any subsequent impacts. Tuesday's closing price was close to or higher than last Friday's closing level.