We Recommend Buying Entropic As We Believe That The Stock Is Undervalued, Says Roth Capital
In a research report issued today, Roth Capital analyst Krishna Shankar reiterated a Buy rating on Entropic Communications (NASDAQ:ENTR) with a $6 price target, which represents a potential upside of 119% from where the stock is currently trading.
Shankar noted, “We recommend buying ENTR, trading at 2x cash/share, 1x book-value and 0.7x EV/TTM revs, as we believe that the stock is undervalued and the company may find multiple interested strategic partners. ENTR pre- announced weak results as legacy discrete MoCA video connectivity chips and satellite/cable chip revenues decline and operators consider consolidation and review their cloud/gateway and OTT video strategy . Longer-term, we believe that ENTR has significant design wins for new cable and satellite set top box/gateways.”
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 13.0% and a 59.5% success rate. Shankar has a 10.8% average return when recommending ENTR, and is ranked #386 out of 3309 analysts.