Needham Offers Commentary On Cypress Semiconductor Corporation (CY) Following Investor Call With Management
Needham analyst Rajvindra Gill came out today with a few insights on Cypress Semiconductor Corporation (NASDAQ:CY), after hosting the company’s CFO Thad Trent and IR Director Rahul Mathur on an investor call, which left him more confident about the company’s long term strategic direction. Gill reiterated a Buy rating on Cypress Semiconductor shares, with a price target of $12, which implies an upside of 13% from current levels.
Gill noted, “While near term industry conditions have not shown signs of improving or declining by the matter, over the last several months mgmt has outlined its plans to grow revenue in the mid- to high single digits. Plans to burn through inventory appear to be on track, with utilization rates expected to remain in the low 60% range through 1H16. Despite this, we believe OpEx synergies will help negate soft demand and utilization rates over the next 2-3 qtrs. Long term, we believe CY is taking important steps to develop a leaner business model that will allow it to take full advantage of the Spansion merger and generate $1 to $1.20 of LT earnings power.”
According TipRanks.com, analyst Rajvindra Gill is one of the top analysts on Wall Street covering technology. His picks average a 17.6 percent one-year return, and he’s ranked in the top 10 percent of all analysts. However, Gill has a -2.2% average return when recommending CY.
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