Needham analyst Rajvindra Gill maintained a Buy rating on Resonant (RESN) today and set a price target of $4.50. The company’s shares closed yesterday at $3.
Gill noted:
“RESN reported 4Q18 revenue below expectations driven by sluggish mobile handset demand in China. Due to the softer China handset market, RESN has limited near term visibility into the product launches of new handsets shipping with ISN designed devices. Despite the the macro environment, RESN exceeded its 2018 20 contracted designs accepted by customers and over ten RESN designed devices shipping. RESN also highlighted its new XBAR technology when it demoed its filter for 5G band n79 to select customers at MWC. Due to the weak China handset demand, we are reducing our revenue estimates. We anticipate softer near term demand followed by strong growth in 2H19 and 2020 as OEMs launch new handsets with RESN’s designs. We maintain the Buy and our $4.50 PT , based on an EV equal to ~9x expected 2020 sales.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 11.3% and a 56.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Everspin Technologies Inc, and Smart Global Holdings Inc.
Resonant has an analyst consensus of Moderate Buy, with a price target consensus of $6.25.
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The company has a one-year high of $6.32 and a one-year low of $0.92. Currently, Resonant has an average volume of 420.6K.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RESN in relation to earlier this year.
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Resonant, Inc. operates as a development-stage company, which engages in the creation of filter designs for radio frequency front-ends for the mobile device industry. Its products include the Infinite Synthesized Networks. Infinite Synthesized Networks designs complex filter products.
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