Canaccord Genuity analyst Michael Walkley maintained a Buy rating on Ceva (NASDAQ: CEVA) yesterday and set a price target of $40. The company’s shares closed yesterday at $24.96, close to its 52-week low of $23.81.
Walkley noted:
“We believe a significant growth driver starting in 2H/18 is base station chipset opportunities with global infrastructure customers including Nokia and ZTE for CEVA’s XC12 platform. In addition, we believe Intel’s increased modem share in new iPhones should sustain through at least mid-2020 and have a positive impact to baseband royalty revenue. We reiterate our BUY rating based on our belief the company has a strong and diversifying licensing base to drive steady long-term and high-margin royalty growth. With the strong licensing revenue in 2017 concentrated in new longer-term growth drivers, including LTE & 5G cellular base stations, cellular IoT, computer vision, connectivity, and voice, we anticipate new royalty growth drivers combined with improved Intel share at Apple to drive strong royalty revenue growth in 2019 and 2020.”
According to TipRanks.com, Walkley is a 5-star analyst with an average return of 13.7% and a 58.9% success rate. Walkley covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Adesto Technologies Corp, and Digi International Inc.
Ceva has an analyst consensus of Strong Buy, with a price target consensus of $35.60.
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The company has a one-year high of $51.80 and a one-year low of $23.81. Currently, Ceva has an average volume of 130.2K.
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CEVA, Inc. engages in the provision of signal processing internet protocol. It operates through the following geographical segments: United States, Europe and Middle East, and Asia Pacific. Its products include digital signal processing cores, connectivity platforms, and development environment.
