Needham analyst Quinn Bolton maintained a Buy rating on Resonant (RESN) today and set a price target of $4.50. The company’s shares closed yesterday at $2.89, close to its 52-week low of $2.45.
Bolton observed:
“RESN reported 3Q18 revenue below expectations mainly driven by a longer than anticipated product qualification cycle at handset OEMs, leading to an approximate six month push-out in the company’s expected revenue ramp. Despite the delay, RESN met many milestones in 3Q18 including growing its average royalty rate by ~20bps to 9.4%, increasing contracted designs to ~75, increasing customer accepted designs to 17, six of which are now shipping in end devices, and introducing if XBAR resonator technology. While we are encouraged by the continued milestone achievements, the longer OEM product qualification cycle has lead to a reduction to our revenue estimates and an increase in near-term cash consumption. We lower 12-month PT of $4.50, based on an EV equal to 9x expected 2020 sales, from $6.”
According to TipRanks.com, Bolton is a 5-star analyst with an average return of 13.1% and a 61.4% 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.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Resonant with a $8 average price target.
See today’s analyst top recommended stocks >>
Based on Resonant’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $5.95 million. In comparison, last year the company had a GAAP net loss of $4.18 million.
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.
Resonant, Inc. operates as a development-stage company, which engages in the creation of filter designs for radio frequency front-ends for the mobile device industry. Its products include the Infinite Synthesized Networks. Infinite Synthesized Networks designs complex filter products.
