In a research report issued yesterday, Canaccord analyst Matthew Ramsay reiterated a Buy rating on shares of InvenSense Inc (NYSE:INVN) with a $15 price target, after the Company’s CFO Mark Dentinger participated in a “fireside chat” Q&A session and conducted investor meetings at the Canaccord Genuity Global Growth Conference in Boston.
Ramsay wrote, “In our discussion, Mark both discussed the company’s expanding opportunities in OIS and EIS camera solutions and for 6-axis gyroscope penetration into Chinese OEMs and also laid out a pragmatic view of their near-term smartphone challenges with share losses at Samsung and slowing market growth.”
The analyst continued, “Overall, we believe InvenSense should drive solid sales and earnings growth over the next several years due to strong sales to top customer Apple, lower but still solid market share at Samsung, increasing gyroscope and OIS adoption at Chinese OEMs, and new mobile device sensor opportunities including microphones, integrated DSP and MCU sensor modules, and integrated sensor software.”
Bottom line: “We continue to believe InvenSense shares represent an attractive opportunity for long-term investors; however, near-term customer concentration will likely put a ceiling on margins and socket losses at key customers could limit top-line growth.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matthew Ramsay has a total average return of 4.4% and a 47.4% success rate. Ramsay has a -41.7% average return when recommending INVN, and is ranked #1201 out of 3734 analysts.
Out of the 17 analysts polled by TipRanks, 10 rate InvenSense stock a Buy, while 7 rate the stock a Hold. With a return potential of 110%, the stock’s consensus target price stands at $21.83.