Analysts Offer Insights on Consumer Goods Companies: Adesto Technologies Corp (IOTS) and Acacia Communications (ACIA)


Analysts have been eager to weigh in on the Consumer Goods sector with new ratings on Adesto Technologies Corp (IOTS) and Acacia Communications (ACIA).

Adesto Technologies Corp (IOTS)

In a report released today, Josh Nichols from B.Riley FBR reiterated a Buy rating on Adesto Technologies Corp, with a price target of $10. The company’s shares closed yesterday at $7.64.

Nichols said:

“Adesto Technologies (IOTS, $10 PT) reported 2Q19 results on 8/6. Revenue of $30.2M was up 66% Y/Y , marginally above our $30.1M and consensus $30.0M with revenue upside driven by broad-based growth across all three business segments (Memory, ASIC & IP , and Embedded Systems). Improved operating leverage resulted in pro forma EPS of $(0.03), ahead of our and consensus of $(0.05) and $(0.04), while EBITDA of $0.9M, also came in above our and consensus of $0.5M. During 2Q, Adesto introduced its new Smart Transceiver chip and commenced shipping its SmartServer IoT platform, the first end-to-end open edge server targeting building automation and industrial IoT.”

According to TipRanks.com, Nichols is a 5-star analyst with an average return of 13.9% and a 44.4% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, Immersion Corp, and Horizon Global.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Adesto Technologies Corp with a $9.83 average price target, which is a 28.7% upside from current levels. In a report released today, Northland Securities also maintained a Buy rating on the stock with a $10 price target.

See today’s analyst top recommended stocks >>

Acacia Communications (ACIA)

In a report released today, Dave Kang from B.Riley FBR maintained a Hold rating on Acacia Communications, with a price target of $70. The company’s shares closed yesterday at $65.06, close to its 52-week high of $67.49.

Kang said:

“Acacia Communications (ACIA) reported 2Q sales/EPS of $111.2M/$0.42, above consensus of $108.6M/$0.35. By segments, Embedded and Semiconductors increased 24.6% Q/Q, respectively, while Pluggable decreased 1.1% Q/Q. By geography, U.S. and Germany increased 25.2% Q/Q, respectively, while China declined 11.7% Q/Q. A positive lateral for Infinera (INFN—Buy, $6 PT) was that sales to Coriant increased 66% Q/Q in 2Q, which seems to support INFN management’s expectation of strong bookings in 2Q to drive revenue growth in 2H. ACIA is in the process of being acquired by Cisco (CSCO), and as a result, it did not have a conference call. We raise our 2019/2020 EPS estimates from $1.57/$1.81 to $1.67/ $1.82.”

According to TipRanks.com, Kang is a 5-star analyst with an average return of 18.4% and a 62.3% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as DASAN Zhone Solutions Inc, Applied Optoelectronics, and Luna Innovations Inc.

Currently, the analyst consensus on Acacia Communications is a Hold with an average price target of $69.29.

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.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts