Needham analyst Quinn Bolton reiterates a Buy rating for GigPeak, Inc. (NYSEMKT:GIG) with a price target of $3.50.

According to the analyst, GIG reported 2Q16 revenue of $15.4MM and NG EPS of $0.05, slightly beating the analyst’s estimates. He believes that 3Q16 guidance is in line, with management guiding revenue to between $15.4mm and $15.6mm.

The analyst explains, “Management believes the 100G market is still largely in the design-in and pre-production stage and doesn’t see mass volume production occurring in 2016. The 100G market represents just 10% of its datacom revenue and started to gain momentum in the last quarter or so. GIG has a comprehensive portfolio of products (including SR multi-channel 28G VCSEL drivers, LR 28G DML drivers, low power TIAs and limiting amps, and low power CMOS-based CDRs) that are currently being sampled to customers and will be ready for when the market does ramp.”

Quinn Bolton is ranked #33 of 4,079 analysts on TipRanks. He maintains a success rate of 68% with an average return of 16.9%.