Needham Thinks Adesto Technologies Corp’s Stock is Going to Recover

In a report released today, Rajvindra Gill from Needham maintained a Buy rating on Adesto Technologies Corp (NASDAQ: IOTS), with a price target of $12. The company’s shares opened today at $5.10, close to its 52-week low of $4.70.

Gill wrote:

“We are adjusting our 4Q18 estimates and 2019 estimates to include the associated OPEX related to Echelon and the potential $6-$8 cost savings, which we assume occurs in the OPEX line. For 4Q18, we increase our OPEX by $4.4MM to $13.1MM to reflect a full quarter of operations of Echelon. For 2019, our OPEX increases to $47.8MM from $31.9MM to reflect a full year of of savings. Our $12 PT remains 2.4x EV/sales (2019).”

According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.7% and a 68.4% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Silicon Laboratories.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Adesto Technologies Corp with a $10 average price target, implying a 96.1% upside from current levels. In a report issued on August 2, B.Riley FBR also maintained 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 477.2K.

Based on the recent corporate insider activity of 79 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. Most recently, in May 2018, Hollmer Shane, the VP Engineering of IOTS bought 5,321 shares for a total of $8,780.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.