Adesto Technologies Corp (NASDAQ:IOTS) shares jumped over 50% today, after CFO Ron Shelton presented at the 19th Annual Needham Growth Conference, stating that the company is targeting to be EBITDA positive in the first half of 2017.
Needham’s top analyst Rajvindra Gill commented, “We are slightly more conservative. We believe, however, that IOTS has the right OPEX structure in place to support an accelerated revenue stream. We believe that embedded flash in microcontrollers has difficulties scaling below 28nm and that the major microcontroller companies (NXPI, Microchip, etc.) could seek alternatives to embedded flash, possibly utilizing Adesto’s ExoXip, which does read write cycles concurrently and generates less power.”
“Net, we believe Adesto has a strong portfolio of lowpower memory for the IoT space, but we remain cautious toward the company’s visibility, as it targets the consumer market,” the analyst concludes.
The analyst reiterates his Strong Buy rating on IOTS, with a $4.00 price target, which implies an upside of 33% from current levels.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rajvindra Gill has a yearly average return of 14.5% and a 61% success rate. Gill is ranked #64 out of 4340 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Adesto Technologies stock a Buy, while 1 rates the stock a Hold. With a return potential of 24%, the stock’s consensus target price stands at $4.00.