In a report released today, Rajvindra Gill from Needham reiterated a Buy rating on Adesto Technologies Corp (NASDAQ: IOTS), with a price target of $12. The company’s shares opened today at $6.40.
Gill wrote:
“We are adjusting our 2019 estimates following the close of the Echelon acquisition. While our revenue estimates stay the same, we are increasing our OPEX to $53MM (vs. 47.8MM) to reflect the full-year impact of Echelon net of the savings. Our GMs move up to 50.8% (vs. 49.4%) on favorable mix shift. Net, our ’19 Non-GAAP EPS moves to $0.10 (vs. $0.20), which we believe is a reasonable base case. We remain bullish on the name as we believe the financial profile exiting the year is compelling: rev run-rate of $120MM, 50% GM, growth rate of 20-25% and ~70% of business focused on the industrial vertical.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 18.6% and a 61.7% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Silicon Laboratories, and Tower Semiconductor.
Adesto Technologies Corp has an analyst consensus of Strong Buy, with a price target consensus of $9.75, representing a 52.3% upside. In a report issued on September 18, B.Riley FBR also reiterated a Buy rating on the stock with a $9.50 price target.
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The company has a one-year high of $10.80 and a one-year low of $4.70. Currently, Adesto Technologies Corp has an average volume of 580.6K.
Based on the recent corporate insider activity of 74 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 IOTS in relation to earlier this year.
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Adesto Technologies Corp. engages in the development, manufacture, and market of non-volatile memory products. It offers DataFlash, Fusion Serial Flash, Standard Serial Flash, EcoXiP, Mavriq and Moneta. The company was founded by Narbeh Derhacobian, Ishai Naveh, and Shane Hollmer in January 2006 and is headquartered in Santa Clara, CA.
