Cypress: We Remain On The Sidelines Until Any Future Growth Drivers Can Be Addressed, Says Feltl
In a research report released today, Feltl and Company analyst Jeffrey Schreiner reiterated a Hold rating on Cypress Semiconductor (CY) with a $10 price target. The report follows CY’s earnings results which were reported on July 2.
Schreiner commented: “We believe CY continues to face concerns over long-term growth strategies. While CY contends its touch IC business is strategic, the company does not provide investors with revenue contribution or market share, suggesting its actual value remains unknown to investors. We estimateCY’s market share is too low to be a meaningful player in touch IC markets. While the introduction of fingerprint sensors could help bolster future touch IC sales, we believe CY will have a much lower GM profile than market leader SYNA as it will be required to pay royalties to IDEX. In SRAM, CY commands ~40%+ market share of an eroding market. In a few years SRAM opportunities may be less than ~$100m. Even more troubling is that SRAM accounts for a significant portion of GM $ within CY’s operating model. We believe currentvaluation is primarily supported by its oversized dividend and not operating metrics. We remain on the sidelines until future growth drivers can be addressed”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Jeffrey Schreiner currently has a one-year average return of 8.3% and a 63% success rate. Schreiner is ranked #723 out of 3213 analysts.