Needham analyst Rajvindra Gill maintained a Buy rating on DSP Group (DSPG) today and set a price target of $15. The company’s shares opened today at $12.60.
Gill wrote:
“DSP Group ended the fourth quarter with an EPS of $0.04, beating the street’s $0.03. The company reported revenue of $26.1M, in line with street estimates. However, based on DSPG’s opex and revenue guidance for Q1, we expect them to end the first quarter with negative earnings, as softness in their Legacy businesses continue. We are encouraged by DSP’s shift away from its Legacy (cordless) business and shift towards its growth initiatives, which composed 59% of 4Q revenue. We expect the company to move closer to its 50% long-term gross margin target in 2019.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 10.8% and a 53.6% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.
DSP Group has an analyst consensus of Moderate Buy, with a price target consensus of $15.
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Based on DSP Group’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $405K. In comparison, last year the company had a GAAP net loss of $129K.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is neutral on the stock. Most recently, in November 2018, Yair Seroussi, a Director at DSPG sold 15,000 shares for a total of $185,850.
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DSP Group, Inc. engages in the provision of wireless chipset solutions for converged communications. It operates through the following segments: Home, Office, and SmartVoice. The Home segment offers wireless chipset solutions at home. The Office segment comprises of portfolio solutions for VoIP terminals.
