In a report released today, Gus Richard from Northland Securities maintained a Buy rating on Vicor Corp (VICR), with a price target of $39. The company’s shares closed yesterday at $32.04, close to its 52-week low of $28.76.
Richard wrote:
“We believe that all the Company’s products at standard cost generate over 50% gross margin. Opex was in-line with our model. On the balance sheet, in Q1 cash decreased $4M to $66.6M due to payments for recently purchased equipment. Receivables at the end of Q1 were $41.7M, down $2M Q/Q as DSOs rose to 58 days from 44 days. Inventories increased to $51.6M up $4.2M as days of inventory increased to 136 day from 108 day. Q1 was Bottom: Q1 bookings were $66.6M up 10.2% in Q4:19. Book-to-bill was 1.01. Even with demand for Advanced Products remains weak in Q2 the Company expects revenue to be up modestly Q/ Q. We expect earnings to accelerate for several reasons. First, we believe roughly $5M-$10M in revenue was pushed out the last couple of quarters into 2H:19.”
According to TipRanks.com, Richard is a top 100 analyst with an average return of 25.8% and a 72.3% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Akoustis Technologies, and Power Integrations.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Vicor Corp with a $39 average price target.
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Vicor Corp’s market cap is currently $1.29B and has a P/E ratio of 41.15. The company has a Price to Book ratio of 7.01.
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Vicor Corp. engages in the design, development, manufacture, and marketing of modular power components and complete power systems based upon a portfolio of patented technologies. It operates through the following segments: Brick Business Unit, VI Chip, Picor, and Corporate. The Brick Business Unit provides modular power converters and configurable products.
