In a research report released Friday, Roth Capital analyst Krishna Shankar reiterated a Buy rating on shares of InvenSense Inc (NYSE:INVN), with a price target of $19, as the company is scheduled to report its fiscal second-quarter earnings results on Wednesday, October 28 after market close. InvenSense shares are currently trading at $10.64, up $0.09 or 0.85%.
Shankar wrote, “On October 28, we expect INVN to report 2Q16 revenue/proforma EPS of $112.4 million/$0.14 with guidance for 1% to 3% sequential revenue growth. We believe that strength at Apple with iPhone6s and gains with China high-end Android smartphone vendors may offset market-share losses at Samsung and a moderating growth smartphone/tablet market. Longer-term, we believe that INVN has higher-margin growth opportunities in image stabilization modules, microphones, sensor System-On-Chip (SOC), wearables, Internet of Things, smart TV, drones and virtual reality applications.”
The analyst concluded, “We believe INVN is well-positioned as a market leader in the $2.6 billion MEMS
motion sensor market and $4.1 billion MEMS microphone market by 2016 based on industry estimates.
We believe INVN has new growth opportunities for its OIS chips, high-end microphone chips, sensor SoC
chips with software for markets such as wearables, smart TV, gaming, Internet-of-Things, and health/fitness
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Krishna Shankar has a total average return of 3.2% and a 53.1% success rate. Shankar has a -29.7% average return when recommending INVN, and is ranked #1115 out of 3801 analysts.
Out of the 12 analysts polled by TipRanks, 7 rate InvenSense stock a Hold, while 5 rate the stock a Buy. With a return potential of 56%, the stock’s consensus target price stands at $16.75.