Pixelworks Quarterly Update; Roth Capital Reiterates Buy
Roth Capital analyst Krishna Shankar reaffirmed a Buy rating on Pixelworks (NASDAQ:PXLW) with a $10 price target, as the company reported in-line 3Q14 revenues with slightly lower proforma EPS than Roth’s estimate due to higher opex with guidance for sequential revenue decline of 12%.
Shankar noted, “We believe that seasonality in the TV/panel and projector business, together with no IP licensing revenues in 4Q led to cautious nearterm outlook. We believe that 2015 growth will be driven by new projector platform ramp, demand for high-resolution/4K Ultra-high definition TV/monitor video processors, and new Iris mobile video processor chip and IP licensing opportunities.”
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 4.5% and a 48.1% success rate. Shankar has a -30.2% average return when recommending PXLW, and is ranked #1108 out of 3358 analysts.