In a research report issued Tuesday, Roth Capital analyst Krishna Shankar assigned a Buy rating on Pericom Semiconductor (NASDAQ:PSEM) with a price target of $13.00.
Shankar observed, “On October 28, we expect PSEM to report in-line 1Q15 revenues/proforma EPS of $33.7 million/$0.12 with good gross margins of 42.5% driven by improving product mix and sequential guidance for 2% revenue growth. New higher-margin products include proprietary analog, timing, and connectivity platforms for servers/storage, cloud computing, telecom/networking, mobility, PC, consumer electronics and embedded applications. We believe that PSEM is an attractively valued small-cap value idea trading at 17x NTM earnings, 1x book-value, 0.7x EV/TTM revs, and 8x TTM EBITDA.”
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 7.6% and a 44.9% success rate. Shankar is ranked #713 out of 3349 analysts.