Chipmakers Analog Devices (ADI) and Semtech (SMTC) received stock price-target hikes on Thursday after posting quarterly results, while industry peers Cirrus Logic (CRUS) and Tower Semiconductor (TSEM) also merited increases.
Norwood, Mass.-based Analog Devices earned at least three price-target increases after posting fiscal second-quarter results early Wednesday that beat expectations.
RBC Capital Markets reiterated its outperform rating on ADI and upped its price target to 92 from 90. Oppenheimer increased its price target to 100 from 90 and kept its outperform rating. Pacific Crest Securities hiked its target to 103 from 98 and maintained its overweight rating.
Analog Devices was down 2.8%, near 83.30, in morning trading on the stock market today. The stock fell below its recent buy point of 84.34 from a cup base. ADI shares jumped to a 17-year high of 90.49 intraday on Wednesday.
Analog Devices is attractive because of its presence in the automotive-chip market and synergies from its recent acquisition of Linear Technology, said Pacific Crest Michael McConnell said in a note to clients.
But ADI faces challenges in its consumer-chip business, losing content in Apple‘s (AAPL) upcoming iPhone 8.
Camarillo, Calif.-based Semtech late Wednesday posted mixed results for its fiscal first quarter, but gave healthy guidance.
Semtech earned 44 cents a share excluding items, up 47% year over year, on sales of $143.8 million, up 10%, in the quarter ended April 30. Analysts expected it to earn 41 cents a share on sales of $145.5 million.
For the current quarter, Semtech expects to earn 46 cents a share excluding items, up 31%, on sales of $152 million, up 12%, based on the midpoint of its guidance. Wall Street was modeling for 44 cents and $152.2 million.
Semtech makes analog and mixed-signal semiconductors for high-end consumers, enterprise computing, communications and industrial equipment.
Drexel Hamilton kept its buy rating on Semtech and raised its price target to 45 from 42. RBC maintained its sector perform rating on Semtech, but upped its target to 39 from 38.
Semtech stock was down 2.9%, near 37.10, in morning trading Thursday. Its shares are back in buy range after its recent breakout from a cup-with-handle base and 35.85 buy point.
The maker of audio chips got a price target hike on Thursday. Needham reiterated its buy rating on Cirrus Logic stock and raised its target to 80 from 70.
Cirrus was up 3%, near 67.90, in morning trading.
Cirrus has revenue-growth drivers beyond its main customer Apple in 2018 and 2019, Needham analyst Rajvindra Gill said in a report.
The growing market for Android smartphone digital headsets is one major opportunity, he said. Another is that of always-on voice-based personal assistant devices.
Cirrus also is expanding into the midtier smartphone market with customers like Samsung, Gill said.
Needham pounded the table for Tower Semiconductor on Thursday, reiterating its strong buy rating and upping its price target to 35 from 30.
“Tower Semi is tied to several secular growth drivers in analog, including increasing RF (radio frequency) content in smartphones, increasing demand for camera (and) LIDAR (light detection and ranging) sensors for ADAS (advanced driver-assistance systems)/active safety, machine vision in factory automation, and growing demand for power-efficient modules for electric vehicles and consumer electronics,” Gill said in a report.
Tower Semi stock was down 0.8%, near 25.20, in morning trading.