Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Formfactor (FORM) and Calix Inc (CALX).
Formfactor (FORM)
Formfactor received a Hold rating and a $18 price target from Northland Securities analyst Gus Richard today. The company’s shares closed yesterday at $18.71, close to its 52-week high of $19.27.
Richard observed:
“We trim our estimates moving forward as we are not seeing evidence of a robust pick up in demand. While FORM is growing market share, is well managed and executing well in a challenging environment, we believe that this is priced into the shares. We lift PT to $18 on 20x our lower CY20 estimate and lower our rating to MP. Key Points FORM Reported Solid Quarter: FORM reported non-GAAP earnings of $0.20 on $132M versus our estimate of $0.18 on $131M. GAAP gross margin was 39.7%, 120 bps above our model and down 10 bps Q/Q. A richer mix of higher margin test system revenue offset the lower volume Q/ Q. Opex was in line with our model. Balance sheet metrics were stable in the quarter. Cash and marketable securities was $159.8M up $10.8M Q/Q. Accounts receivable was $81.5M down $13.8M Q/Q as DSO dropped to 56 days or 6 days Q/Q.”
According to TipRanks.com, Richard is a top 100 analyst with an average return of 25.5% and a 72.0% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Akoustis Technologies, and Power Integrations.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Formfactor with a $19 average price target.
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Calix Inc (CALX)
In a report released today, Tim Savageaux from Northland Securities maintained a Buy rating on Calix Inc, with a price target of $10. The company’s shares closed yesterday at $7.40.
Savageaux noted:
“We expect those issues to resolve in 2H, aided by solid 7% growth in Q1 bookings, continued ramps at VZ and other Tier 1 customers and new AXOS customer additions, offset by headwinds among traditional Tier 2 wireline carriers. Net Net our 2H19 view remains unchanged, with our PT reduced to reflect lower overall revenue levels.”
According to TipRanks.com, Savageaux is a 4-star analyst with an average return of 7.4% and a 56.1% success rate. Savageaux covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, DASAN Zhone Solutions Inc, and Acacia Communications.
The the analyst consensus on Calix Inc is currently a Hold rating.
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