In a report released today, Rajvindra Gill from Needham assigned a Buy rating to Cypress Semicon (NASDAQ: CY), with a price target of $23. The company’s shares closed yesterday at $16.29.
Gill wrote:
“Over the past two days, we hosted a series of investor meetings with the management of Cypress. Specifically, we see upside to our estimates for the memory segment (accounts for 40% of sales) as the market dynamics have become significantly favorable over the past two-years. Importantly, we believe CY deserves a higher multiple on that segment as visibility has improved significantly and is now expected to grow mid-single digits vs. declining 2-3%. On the MCD side (60%), we see favorable underlying trends in IoT as the number of IoT designs / programs have increased markedly since last year. The company’s dominance in Wi-Fi/combo, specifically their lead in 802.11ac, provides them a unique competitive advantage in IoT as we believe low-power, higher range Wi-Fi is disrupting the market for connectivity standards for IoT .”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 21.4% and a 67.5% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.
Currently, the analyst consensus on Cypress Semicon is Strong Buy and the average price target is $21.33, representing a 30.9% upside.
In a report issued on May 3, Mizuho Securities also reiterated a Buy rating on the stock with a $21 price target.
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The company has a one-year high of $18.87 and a one-year low of $12.50. Currently, Cypress Semicon has an average volume of 5.76M.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is neutral on the stock.
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Cypress Semiconductor Corp. designs, develops, manufactures and markets a broad range of high-performance solutions for embedded systems, from automotive, industrial and networking platforms to highly interactive consumer devices.
