Needham analyst Quinn Bolton maintained a Buy rating on Maxlinear Inc (NYSE: MXL) today and set a price target of $20. The company’s shares closed yesterday at $17.90.
Bolton observed:
“MXL reported 2Q18 revenue at the low end of guidance while NG EPS beat our estimate by $0.06 on stronger than expected NG GM. However, 3Q18 revenue guidance came in much lower than expected driven by order volatility around the DOCSIS 3.0 to DOCSIS 3.1 transition in the cable market. Reflecting a pause in DOCSIS 3.0 orders, MXL expects its Connected Home revenue to decline 30-35% Q/ Q in 3Q18. 3Q18 should represent the revenue trough and management expects 4Q18 revenue to grow 3%-7% Q/Q. Given MXL’s largest cable data customer has recently qualified its DOCSIS 3.1 residential gateway at its lead MSO, we believe MXL’s outlook is achievable. While we are lowering our forward estimates and reducing our PT from $22 to $20, based on an EV of 4x expected 2019 sales, we maintain our Buy rating as we believe estimates have troughed.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 16.4% and a 68.0% success rate. Bolton covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, Sequans Communications S A, and Quantenna Communications.
Currently, the analyst consensus on Maxlinear Inc is a Moderate Buy with an average price target of $21.
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Based on Maxlinear Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $1.85 million. In comparison, last year the company had a net profit of $10.97 million.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.
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MaxLinear, Inc. engages in the provision of radio frequency, high-performance analog, and mixed-signal communications systems-on-chip solutions for the connected home, wired and wireless infrastructure, and industrial and multi-market applications.
