Needham Believes Xilinx (XLNX) Still Has Room to Grow


Xilinx (NASDAQ: XLNX) received a Buy rating and a $100 price target from Needham analyst Quinn Bolton today. The company’s shares closed yesterday at $78.31, close to its 52-week high of $79.88.

Bolton noted:

“We are initiating coverage of Buy rating and establishing a 12-month price target of $100, based on a 23x P/E of expected CY20 adjusted earnings (excluding SBC). Xilinx co-founders invented the FPGA and today Xilinx is the world’s largest FPGA vendor. We believe the FPGA segment is entering a new growth phase driven by the adoption of accelerated computing. Based on a proprietary Needham survey of data center workload specialists, we believe Xilinx is poised for share gains in the Data Center market. Xilinx is also well positioned for the roll-out of 5G wireless networks, in our opinion. We believe these growth opportunities should allow Xilinx revenue growth to accelerate over the next several years, while the overall revenue growth rate of the semiconductor industry decelerates.”

According to TipRanks.com, Bolton is a 5-star analyst with an average return of 15.9% and a 64.6% 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.

Xilinx has an analyst consensus of Moderate Buy, with a price target consensus of $83.25, implying a 6.3% upside from current levels. In a report issued on September 25, KeyBanc also maintained a Buy rating on the stock with a $90 price target.

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Xilinx’s market cap is currently $19.81B and has a P/E ratio of 37.65. The company has a Price to Book ratio of 8.54.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock.

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Xilinx, Inc. engages in designing and developing programmable devices and associated technologies. It also provides design services, customer training, field engineering, and technical support. The company was founded by Ross Freeman, Bernard Vonderschmitt, and James V. Barnett II in February 1984 and is headquartered in San Jose, CA.

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