Oppenheimer analyst Rick Schafer maintained a Buy rating on Monolithic Power (NASDAQ: MPWR) today and set a price target of $150. The company’s shares closed yesterday at $108.43, close to its 52-week low of $103.03.
Schafer said:
“MPWR reported its latest beat/raise Thursday. 3Q sales/EPS of $160M/$1.06 topped consensus $158.5M/$1.05E while 4Q outlook of $154M/$0.99 was ahead of Street $153.4/$0.98E. Bucking geopolitical headwinds, upside was led by diverse greenfield ramps in server, auto, industrial and comms. Mgmt saw some trade war–related softness in the consumer segment, particularly in China. GM was up another 40bp Y/ Y to 56.1%. 3Q sales grew 24% Y/Y, leaving MPS on pace to reach $1B organically by 2021. We view a $2B top-line attainable within ~5 years. With myriad opportunities still on the come, MPS boasts standout growth, margin expansion and a pristine balance sheet. Our top small cap structural growth/GM story, we remain long-term MPWR buyers with a $150 target.”
According to TipRanks.com, Schafer is a 5-star analyst with an average return of 13.7% and a 63.2% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Texas Instruments, and Maxim Integrated.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Monolithic Power with a $153.75 average price target, implying a 41.8% upside from current levels. In a report issued on October 16, KeyBanc also maintained a Buy rating on the stock with a $150 price target.
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The company has a one-year high of $152.21 and a one-year low of $103.03. Currently, Monolithic Power has an average volume of 426.1K.
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.
