Needham Remains a Buy on Integrated Device Tech

In a report released today, Quinn Bolton from Needham reiterated a Buy rating on Integrated Device Tech (NASDAQ: IDTI), with a price target of $38. The company’s shares closed yesterday at $27.83.

Bolton commented:

“IDT reported better than expected F4Q18 results and in- line F1Q19 guidance driven by Automotive, Industrial and Wireless Power products. F1Q19 guidance would have easily beat expectations were it not for a $4-$5MM per quarter hit to revenue from the ZTE component shipment ban. IDT expect all four segments to post DD percentage growth Y/Y in F1Q19 and announced the company is on track to meet its targeted $1bn annualized revenue run rate before 2020 as previously estimated. We are encouraged by IDT’s strong organic revenue growth and believe the company will continue to grow faster than the overall semiconductor market in FY19 due to the strength in its Auto & Industrial, Computing and Consumer end- markets. We reiterate our Buy rating and $38 price target.”

According to TipRanks.com, Bolton is a 5-star analyst with an average return of 15.0% and a 65.4% 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.

Integrated Device Tech has an analyst consensus of Moderate Buy, with a price target consensus of $35.50.

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Based on Integrated Device Tech’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $225 million and quarterly net profit of $20.71 million. In comparison, last year the company earned revenue of $176 million and had a net profit of $30.21 million.

Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Mario Montana, the VP, CORPORATE GM of IDTI sold 22,000 shares for a total of $705,100.

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Integrated Device Technology, Inc. designs, develops, manufactures and markets semiconductor and system-level solutions for the advanced communications, computing, consumer, automotive, industrial and Internet-of-things markets. The company operates its business through the following segments: Communications, and Computing, Consumer & Industrial.