In a research report released Thursday, Roth Capital analyst Krishna Shankar maintained a Buy rating on Pixelworks, Inc. (NASDAQ:PXLW) with an $8.00 price target, representing a potential upside of 26% from Thursday’s closing price.
Shankar wrote, “We believe that the Asus ZenPad tablet design win at Computex is positive for the adoption of Iris mobile video processor technology with further design wins in the pipeline. We believe that revenue contributions from iris may be modest in 2015 ($3 to $4 million) ramping to $15 to $20 million in 2016 and represent 15 to 20% of our 2016 proforma EPS estimate of $0.25. Major customers such as Apple and Android OEMs represent IP license/royalty upside.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Krishna Shankar has a total average return of 9.7% and a 62.0% success rate. Shankar has a 12.9% average return when recommending PXLW, and is ranked #494 out of 3610 analysts.