Oppenheimer Raises Estimates For InvenSense Inc (INVN), But Remains Cautious

In a research report published today, Oppenheimer analyst Andrew Uerkwitz reiterated a Perform rating on shares of InvenSense Inc (NYSE:INVN), after the company released fiscal first-quarter results, posting revenues and EPS of $106.3 million and $0.14, beating Oppenheimer’s estimates of $100.5 million and $0.10 respectively.

Uerkwitz wrote, “INVN fared better than most of its peers with heavy exposure to smartphones due to its favorable customer mix and leading product position. Management remains focused on long-term growth and has executed well in the current environment, keeping a tight control on spending and reinforce its offering with new products with significant growth potential. Meanwhile, a number of near-term headwinds such as weak macro, share loss at Korean customers, and near-term margin pressure keep us on the sideline.”

“We raise FY16-17 revenue/EPS estimates from $441/$0.53 and $468M/0.55 to $447M/$0.58 and $482M/$0.62 based on higher handset revenues and lower margins.”, the analyst added.

Bottom line, “INVN has solid management, superior products, and multiple revenue growth initiatives. Yet weak macro, share loss, and margin pressure may create near-term volatility. We stay sidelined until headwinds subside.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 2.8% and a 54.7% success rate. Uerkwitz has a 25.7% average return when recommending INVN, and is ranked #1333 out of 3724 analysts.

Out of the 17 analysts polled by TipRanks, 10 rate InvenSense Inc stock a Buy, while 7 rate the stock a Hold. With a return potential of 76.1%, the stock’s consensus target price stands at $21.83.

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