Needham analyst Quinn Bolton maintained a Buy rating on Maxlinear Inc (NYSE: MXL) today and set a price target of $20. The company’s shares closed yesterday at $17.01, close to its 52-week low of $14.87.
Bolton observed:
“MXL reported in-line 3Q18 results, but provided 4Q18 guidance slightly below expectations as near-term uncertainties limit the pace of revenue recovery. With the order volatility from the DOCSIS 3.1 transition in the cable data market nearing an end, MXL expects to see its cable data business return to Q/ Q growth in 4Q18. MXL’s Infrastructure segment remains on track to deliver double- digit growth in 2018 with expected ~14% Q/Q revenue growth in 4Q18. We believe MXL is poised for a resumption in revenue growth after reaching a trough in 3Q18, but have reduced the pace of recovery in our estimates to reflect uncertainty around tariff impacts in the cable data market as well as a lower outlook for the Industrial segment. We maintain our Buy rating with a $20 PT , based on an EV of ~3.6x expected 2020 sales.”
According to TipRanks.com, Bolton is a 5-star analyst with an average return of 13.1% and a 60.8% 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.
Currently, the analyst consensus on Maxlinear Inc is a Moderate Buy with an average price target of $19.25, which is a 13.2% upside from current levels. In a report issued on October 18, Stifel Nicolaus also maintained a Buy rating on the stock with a $22 price target.
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The company has a one-year high of $28.06 and a one-year low of $14.87. Currently, Maxlinear Inc has an average volume of 842.2K.
Based on the recent corporate insider activity of 65 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 MXL in relation to earlier this year.
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MaxLinear, Inc. engages in the provision of radio frequency, high-performance analog, and mixed-signal communications systems-on-chip solutions for the connected home, wired and wireless infrastructure, and industrial and multi-market applications.
