Oppenheimer analyst Rick Schafer maintained a Buy rating on Monolithic Power (MPWR) today and set a price target of $150. The company’s shares closed yesterday at $155.74, close to its 52-week high of $161.22.
Schafer wrote:
“MPWR reports earnings Thursday (5/2). We see results in line-to-better vs. consensus $141M/$0.84E and 2Q outlook in line with Street $145M/$0.85E. MPS continues to weather the current semi correction better than peers, posting DD (%) auto/industrial growth in 4Q and tracking ~10% sales growth in 2019 while larger HPA names are tracking flat/worse. Mgmt has echoed peer demand/visibility concerns related to macro uncertainty. While visibility remains challenged, channel inventory appears to be clearing. On average, MPWR outgrows analog peers 10-15%/year. We see top line reaccelerating in 2H, returning to ~20% Y/Y growth by 2020 and achieving $1B sales organically by 2021. MPS remains ideally positioned for outsized growth/upside led by diverse greenfield opportunities in server, auto/industrial and comms.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 17.1% and a 73.2% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Monolithic Power has an analyst consensus of Strong Buy, with a price target consensus of $149.
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Based on Monolithic Power’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $27.64 million. In comparison, last year the company had a net profit of $21.86 million.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock.
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Monolithic Power Systems, Inc. designs, develops and markets power solutions. Its products include power modules, class-d audio, ultrasound mux, automotive, LED lighting and illumination, precision analog and motor drivers. The company was founded by Michael R. Hsing and James C. Moyer on August 22, 1997 and is headquartered in Kirkland, WA.
