In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Kulicke & Soffa (KLIC), with a price target of $27. The company’s shares closed yesterday at $21.66.
Ellis said:
“Soffa’s (KLIC) F3Q results exceed our recently-reduced forecasts and the guide’s growth exceeded our preview concerns, a further sign of a March bottom. More positively, mgmt sees a gradual business recovery beyond 4Q19 into CY20, which is consistent with our view a 1Q bottom can hand off to a 2H consumer and enterprise build acceleration and a 2020 cyclical recovery. Less favorably, the LT tax rate ticks 300 bps higher, triggered by a valuation allowance reversal. Takeaways were mostly positive in our view. As such, the performance affirms four recent points we thought confirmed a bottom was behind and fundamental acceleration and stock gains ahead: 1) the last peak-to-trough revenue decline of 57% was severe, 14% above the decade’s five-cycle average.”
According to TipRanks.com, Ellis is a 5-star analyst with an average return of 10.9% and a 56.3% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Applied Materials Inc, Axcelis Technologies, and Rudolph Technologies.
Currently, the analyst consensus on Kulicke & Soffa is a Moderate Buy with an average price target of $26.50.
See today’s analyst top recommended stocks >>
The company has a one-year high of $27.45 and a one-year low of $17.40. Currently, Kulicke & Soffa has an average volume of 454.4K.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KLIC in relation to earlier this year.
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.
Kulicke & Soffa Industries, Inc. engages in the design, manufacture, and sale of tools used to assemble semiconductor devices. It operates through the Capital Equipment and APS segments. The Capital Equipment segment consists of ball bonders, wedge bonders, advanced packaging, and electronic assembly solutions.
