Needham analyst Rajvindra Gill maintained a Buy rating on Cypress Semicon (CY) today and set a price target of $16. The company’s shares opened today at $15.14.
Gill noted:
“Cypress today announced the closure of its joint venture with SK Hynix, with full operations to commence immediately. In October 2018, CY announced its decision to partially exit the volatile NAND market by converting its two year take-or-pay contract with SK Hynix into a five year joint venture, with CY owning 40%. CY also wanted to reduce its exposure to the low-margin consumer end market, to which 50% of NAND products are sold. CY expects this deal to be accretive to revenue and gross margins and generate more cash through dividends over the next five years.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 10.1% and a 55.4% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Smart Global Holdings Inc, and Everspin Technologies Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Cypress Semicon with a $16.58 average price target.
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Based on Cypress Semicon’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $267 million. In comparison, last year the company had a net profit of $9.08 million.
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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.
