Cypress Semiconductor Corporation (NASDAQ:CY) and Fujitsu Electronics Incorporated finalized an agreement that will significantly expand FEI’s role as a distribution partner for Cypress. In the wake of Cypress’s merger withSpansion Inc. in March 2015, the agreement replaces the two prior agreements between Spansion and FEI, providing FEI with access to the products covered by the prior agreements and adding Cypress’s entire product line, including PSoC® Programmable System-on-Chip devices, automotive touch-sensing solutions, SRAM and nonvolatile memories, Bluetooth Low Energy solutions and USB controllers. The agreement took effect onSeptember 10, 2015 and is expected to generate $500 million in sales the first year.
“We are excited to welcome Fujitsu Electronics as a distribution partner for all Cypress products, building on their team’s knowledge of and design expertise with our NOR and NAND flash memories, MCUs and analog products,” said Mike Balow, Executive Vice President of Sales and Applications at Cypress. “One-third of Cypress’s current revenue is generated in Japan, and FEI will help us to further grow our business in this key market. The agreement will expand our ability to sell the combined Cypress product portfolio into the large Japanese automotive market and to new customers in the industrial and consumer markets.”
“We are pleased to expand our distribution partnership with Cypress to include their full lineup of products, including their flexible PSoC solutions, market-leading SRAMs and cutting-edge USB Type-C controllers,” said Shigeo Kashiwagi, President of Fujitsu Electronics Inc. “Cypress’s focus on high-quality, high-performance products is a natural fit for the Japanese market, and FEI has the design experience and strong customer relationships to help expand their presence with a broad range of key OEMs.” (Original Source)
Shares of Cypress Semiconductor closed yesterday at $10.06. CY has a 1-year high of $16.25 and a 1-year low of $8.04. The stock’s 50-day moving average is $10.52 and its 200-day moving average is $12.62.
On the ratings front, Cypress Semiconductor has been the subject of a number of recent research reports. In a report issued on August 31, Mizuho analyst Vijay Rakesh maintained a Buy rating on CY, with a price target of $21, which represents a potential upside of 108.7% from where the stock is currently trading. Separately, on July 17, Needham’s Rajvindra Gill reiterated a Buy rating on the stock and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vijay Rakesh and Rajvindra Gill have a total average return of 30.3% and 13.8% respectively. Rakesh has a success rate of 67.6% and is ranked #12 out of 3754 analysts, while Gill has a success rate of 50.3% and is ranked #130.
Overall, 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $17.75 which is 76.4% above where the stock closed yesterday.
Cypress Semiconductor Corp with its subsidiaries, designs, develops, manufactures and markets high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and system value.