Is It A Good Time To Accumulate InvenSense? Roth Capital Says Yes
In a research report published today, Roth Capital analyst Krishna Shankar assigned a Buy rating on InvenSense Inc (NYSE:INVN) with a $28 price target, which represents a potential upside of 34% from where the stock is currently trading.
Shankar commented: “We recommend accumulation of INVN with tear-downs of the iPhone6 and iPhone6 Plus revealing the use of INVN chips. We believe INVN may benefit from new business with Apple, LG, Amazon, Xiomi and China Android smartphone customers offsetting moderating growth at Samsung. We estimate that an Apple iPhone6 and wearable platform win may contribute $50 million to $100 million in revenues and $0.15 to $0.25 in EPS over next 12 months, which we have built into our current estimates.”
The analyst continued, “We recommend accumulation of INVN on the 10% sell-off yesterday due to a competitor downgrade over concerns regarding multiple suppliers for iPhone6 and an overall tech sector sell-off. While tear-downs have confirmed the presence of the 6-axis INVN gyro/accelerometer motion processor in the iPhone6 and iPhone6 Plus, they also indicate a Bosch gyro (possibly for a health fitness application?). We believe that INVN may also have the image stabilization 2-axis gyro design win within the larger iPhone6 Plus.”
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 14.2% and a 62.5% success rate. Shankar has a 1.6% average return when recommending INVN, and is ranked #331 out of 3300 analysts.