Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Monolithic Power (MPWR) and Fortinet (FTNT).
Monolithic Power (MPWR)
In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Monolithic Power, with a price target of $160. The company’s shares closed yesterday at $156.17, close to its 52-week high of $161.22.
“MPWR reported 1Q results Thursday. Sales/EPS of $141M/$0.84 matched consensus $141M/$0.84E while the 2Q $151M/$0.93 outlook edged Street’s $150M/ $0.92E. It’s notable that MPS’ 2Q topline will be up 8%E Y/Y while larger HPA peers are expected down ~10% Y/Y in C2Q. GM was down 40bps but expected flat Q/Q. Mgmt expects topline growth to continue outpacing peers by 10-15%/year as MPS’ myriad greenfield opportunities in auto, industrial, server and 5G ramp. Channel inventory was up 20 days 34 days (to 205) internally. We expect inventories to remain elevated this year until the current correction concludes and visibility improves. In spite of macro uncertainty, MPS remains poised for sustained outsized growth/upside. Our top structural growth/GM story, we remain long-term buyers.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 16.8% and a 72.7% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Monolithic Power is a Strong Buy with an average price target of $149.
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Robert W. Baird analyst Jonathan Ruykhaver maintained a Hold rating on Fortinet today. The company’s shares closed yesterday at $91.51, close to its 52-week high of $96.96.
“We maintain Neutral rating and raise our price target to $100. Fortinet reported a mostly in-line 1Q19 driven by Service Provider growth and Mid-Range appliances growing 31% YoY. FY19 billings guidance was taken up slightly and we caution investors against looking too much into the in-line print. Partner conversations reinforce our believe Fortinet will continue to take share in a consolidating end-market. However, trading at a premium to its five-year historical FCF multiple, we view the stock as fairly valued.”
According to TipRanks.com, Ruykhaver is a top 100 analyst with an average return of 25.8% and a 79.0% success rate. Ruykhaver covers the Technology sector, focusing on stocks such as Forescout Technologies Inc, Carbon Black Inc, and Varonis Systems.
Fortinet has an analyst consensus of Moderate Buy, with a price target consensus of $89.79.
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