Oppenheimer Assigns a Buy Rating on Monolithic Power (MPWR)


In a report released today, Rick Schafer from Oppenheimer assigned a Buy rating to Monolithic Power (MPWR), with a price target of $150. The company’s shares closed yesterday at $132.46.

Schafer commented:

“MPWR reports 4Q18 earnings Tuesday (2/12). We see modest upside vs. consensus sales/EPS of $154M/$0.99E and a 1Q outlook in line with our $145M/$0.88E. So far in this correction, MPWR has shrugged off macro/cycle headwinds seen by HPA peers, led by diverse greenfield ramps in server, auto/industrial, and comms. No semi company is immune to the cycle, and mgmt remarked on the last call that MPS has seen China/consumer softness.We expect 4Q sales up ~20% Y/Y, but expect growth to slow in 1H, before reaccelerating in 2H. We see MPS on pace to reach $1B sales (organically) by 2021 and $2B within ~5 years. It boasts standout growth, margin expansion, and a pristine balance sheet with myriad upside opportunities. Our top structural growth/GM story, we remain long-term buyers with a $150 target.”

According to TipRanks.com, Schafer is a top 100 analyst with an average return of 14.7% and a 68.0% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Monolithic Power with a $148.33 average price target, which is an 12.0% upside from current levels. In a report issued on January 22, Raymond James also maintained a Buy rating on the stock with a $145 price target.

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Based on Monolithic Power’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $31.57 million. In comparison, last year the company had a net profit of $12.07 million.

Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock.

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Monolithic Power Systems, Inc. engages in the provision of power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. It operates through the following segments: Consumer, Industrial, Computing and Store, and Communications.

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