Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Rignet (RNET), NXP Semiconductors (NXPI) and Spotify Technology SA (SPOT).
Rignet (RNET)
In a report released yesterday, Allen Klee from Maxim Group maintained a Buy rating on Rignet, with a price target of $24. The company’s shares closed yesterday at $9.39, close to its 52-week low of $8.70.
Klee said:
“For 1Q19 results scheduled for Monday, May 6, we expect 1Q19 revenue and adjusted EBITDA sequentially declining 3% and 38%, respectively, due to the runoff of the Noble Corp (NE – NR) contract, which should be fully behind them by the end of 1H19.”
According to TipRanks.com, Klee is ranked 0 out of 5 stars with an average return of -12.6% and a 36.3% success rate. Klee covers the Technology sector, focusing on stocks such as Sify Technologies Limited, Dolphin Entertainment Inc, and ATN International, Inc.
Rignet has an analyst consensus of Moderate Buy, with a price target consensus of $24.
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NXP Semiconductors (NXPI)
In a report released yesterday, Rick Schafer from Oppenheimer maintained a Hold rating on NXP Semiconductors. The company’s shares closed yesterday at $105.62.
Schafer wrote:
“NXPI held its earnings call Tuesday morning. 1Q sales/EPS of $2.09B/$1.66 just topped consensus $2.09B/1.55E. 2Q sales outlook of $2.20B was above Street’s $2.15B view, reflecting design win traction and stronger initial 5G BST demand. Mgmt called out China as notably weak/uncertain, though overall expectations for a stronger 2H vs. 1H remain intact. GM decreased 20bps but is expected up 60bps Q/Q in 2Q. Core auto/industrial (67%) fell 10%, led by China where visibility is particularly challenged. As with peers, NXPI is seeing strong initial 5G BST demand, though mgmt mentioned potential lumpiness ahead of expected robust 2020 builds. Channel inventory stayed at 2.4 months. Lingering macro uncertainty and the ongoing semi cycle correction keep us sidelined for now.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 17.1% and a 73.3% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for NXP Semiconductors with a $102.73 average price target, implying a -2.7% downside from current levels. In a report released yesterday, Susquehanna also reiterated a Hold rating on the stock with a $105 price target.
Spotify Technology SA (SPOT)
In a report released yesterday, Jason Helfstein from Oppenheimer maintained a Hold rating on Spotify Technology SA. The company’s shares closed yesterday at $135.77.
Helfstein commented:
“We are maintaining our Perform rating following better 1Q results and 2Q guidance; however, FY guidance is unchanged, suggesting weaker 2H subs and gross margins. 1Q premium subs at the high-end of guidance and modestly ahead of the Street, with ARPU driving revenue beat, which flowed through better gross profit, aided by slower release of original podcast content, and supply constraints of Google Home Mini devices relating to Family Plan promotion. 2H19 sub guidance appears conservative given expectations for higher COGS on podcast investments and international expansion (minimum guarantees). Competition and costs of promotional deals likely to be overhang, as valuation now looks low vs. fair value (50% of NFLX EV/sales).”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 19.7% and a 67.8% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.
Spotify Technology SA has an analyst consensus of Moderate Buy, with a price target consensus of $168.44.
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