In a report released yesterday, Michael Walkley from Canaccord Genuity maintained a Buy rating on Adesto Technologies Corp (NASDAQ: IOTS), with a price target of $9. The company’s shares closed on Friday at $4.51, close to its 52-week low of $4.42.
Walkley observed:
“We maintain our belief Adesto is uniquely positioned in the industrial IoT market to generate strong long-term earnings growth. Management remains confident in the long-term strategy and anticipates more than half of the targeted $6M to $8M cost synergies for the Echelon acquisition will be realized during Q4/18. We believe the Echelon acquisition expands Adesto’s addressable market from IoT ASICs to complete industrial IoT solutions, and we are confident management will execute on its cost synergy targets. We also believe Adesto’s strong design win activity indicates a healthy pipeline of opportunities for the combined Adesto, S3 and Echelon and anticipate an improving mix with stronger gross margin trends longer term. We believe the merged companies have the R&D team and roadmaps to create highly differentiated solutions for targeted Industrial IoT customers.”
According to TipRanks.com, Walkley is a 5-star analyst with an average return of 13.8% and a 58.9% success rate. Walkley covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Digi International Inc, and Sierra Wireless Inc.
Currently, the analyst consensus on Adesto Technologies Corp is a Strong Buy with an average price target of $9.88, representing an 119.1% upside. In a report issued on October 4, Benchmark Co. also reiterated a Buy rating on the stock with a $9 price target.
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Based on Adesto Technologies Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $5.06 million. In comparison, last year the company had a GAAP net loss of $997K.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IOTS in relation to earlier this year.
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Adesto Technologies Corp. engages in the development, manufacture, and market of non-volatile memory products. It offers DataFlash, Fusion Serial Flash, Standard Serial Flash, EcoXiP, Mavriq and Moneta. The company was founded by Narbeh Derhacobian, Ishai Naveh, and Shane Hollmer in January 2006 and is headquartered in Santa Clara, CA.
