Benchmark Starts Vitesse Semiconductor (VTSS) at Buy, Analyst Sees Tipping Point
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Price: $5.28 --0%
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 14 | New: 22
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 14 | New: 22
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Benchmark initiated coverage on Vitesse Semiconductor (NASDAQ: VTSS) with a Buy rating and a price target of $5.50. Analyst Gary Mobley believes the company is at a "tipping point of success."
"Our investment thesis centers on the fruition of turnaround strategy which began seven years ago. Armed with a stronger balance sheet and a refreshed product portfolio, the company is on the cusps of its first annual increase in revenue since 2008 and on the cusps of crossing over to profitability as soon as 3Q FY14 (June)," said Mobley.
"The decline in “old” product revenue during the past three to four years has masked the tremendous growth in New product revenue over the same timeframe. However, we believe the company is now at tipping point as New product revenue is large enough and growing fast enough to overshadow the continued gradual decline of “old” product revenue. Third-quarter FY14 (June) may be the first quarter in which New product revenue is greater than “old” product revenue.," he added.
For an analyst ratings summary and ratings history on Vitesse Semiconductor click here. For more ratings news on Vitesse Semiconductor click here.
Shares of Vitesse Semiconductor closed at $4.09 yesterday.
"Our investment thesis centers on the fruition of turnaround strategy which began seven years ago. Armed with a stronger balance sheet and a refreshed product portfolio, the company is on the cusps of its first annual increase in revenue since 2008 and on the cusps of crossing over to profitability as soon as 3Q FY14 (June)," said Mobley.
"The decline in “old” product revenue during the past three to four years has masked the tremendous growth in New product revenue over the same timeframe. However, we believe the company is now at tipping point as New product revenue is large enough and growing fast enough to overshadow the continued gradual decline of “old” product revenue. Third-quarter FY14 (June) may be the first quarter in which New product revenue is greater than “old” product revenue.," he added.
For an analyst ratings summary and ratings history on Vitesse Semiconductor click here. For more ratings news on Vitesse Semiconductor click here.
Shares of Vitesse Semiconductor closed at $4.09 yesterday.
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