There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Acacia Communications (ACIA) and Pixelworks (PXLW) with bullish sentiments.
Acacia Communications (ACIA)
Northland Securities analyst Tim Savageaux maintained a Buy rating on Acacia Communications today and set a price target of $65. The company’s shares closed yesterday at $60.55, close to its 52-week high of $62.18.
Savageaux said:
“We expect that concentration to moderate in Q2 as growth is driven by the increased ramp of ACI200, which the company noted was up significantly in Q1. Offsetting this were both anticipated seasonal declines among traditional carrier focused OEMs, as well as lower 400G module revenue from the company’s direct Cloud customer. $0.37 was well ahead of our $0.28 est, and 3 cents above the high end of a $0.18-$0.34 guidance range driven by the revenue upside as well as 140 bp higher than expected GM of 47.4%, driven by a higher mix DSP/PIC revenue at 30% of total revs vs 22% for FY18.”
According to TipRanks.com, Savageaux is a 4-star analyst with an average return of 6.7% and a 57.5% success rate. Savageaux covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, DASAN Zhone Solutions Inc, and Luna Innovations Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Acacia Communications with a $60.07 average price target, which is a -0.8% downside from current levels. In a report issued on April 18, Rosenblatt Securities also maintained a Buy rating on the stock with a $60 price target.
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Pixelworks (PXLW)
Northland Securities analyst Gus Richard maintained a Buy rating on Pixelworks today and set a price target of $6. The company’s shares closed yesterday at $4.56.
Richard commented:
“We maintain our OP and $6 PT. Key Points PXLW Reports In-line: PXLW reported non-GAAP earnings of ($0.04) on $16.6M a penny better than our estimates and 2 cents better than consensus. Projector revenue was $11.1M below our model of $11.5M, video delivery revenue was $3.9M below our model of $4.3M and mobile revenue of $1.6M was above our model of $0.7M. Upside in mobile was in large part driven by a licensing deal with Youku. Youku is a content creator and aggregator as well as a video hosting service. It is also a subsidiary of Alibaba. GM to 53.2%, 230 bps above our model we estimate that without the licensing deal GM would have been 50.7% in-line with our model of 51%. Opex was $10.3M, $0.1M below our model. Balance sheet metrics were steady in the quarter.”
According to TipRanks.com, Richard is a top 100 analyst with an average return of 25.6% and a 72.8% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Akoustis Technologies, and Power Integrations.
The the analyst consensus on Pixelworks is currently a Hold rating.
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