Oppenheimer analyst Andrew Uerkwitz maintained a Hold rating on Ceva (NASDAQ: CEVA) yesterday. The company’s shares closed yesterday at $27.60, close to its 52-week low of $26.10.
Uerkwitz observed:
“Near-term headwinds continued into 2Q and appear to be compounding. First, trade issues with ZTE delayed several CEVA-related products and future projects. Second, in Q1, slowing China smartphone growth became apparent…in 2Q a key customer lost a material low-end socket. Management also is taking a more prudent approach on the base station opportunity for 2018, indicating its primary customer has yet to hit the accelerator. As we have said before, we do not believe these are operational or fundamental issues to CEVA; instead, it’s timing…and timing that it isn’t in control of CEVA. We do believe base stations will be material to the top line. We believe baseband will return to growth and ZTE will again become a top 5 customer….in 2019.”
According to TipRanks.com, Uerkwitz is a 5-star analyst with an average return of 14.7% and a 61.4% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Axon Enterprise Inc, Himax Technologies, and Turtle Beach Corp.
Ceva has an analyst consensus of Strong Buy, with a price target consensus of $40.75.
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Based on Ceva’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.18 million. In comparison, last year the company had a net profit of $3.91 million.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock.
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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.
