Dougherty & Co Starts EMCORE (EMKR) at Buy
- Dow, S&P hit highs; Trump comment hammers drug stocks
- Unusual 11 Mid-Day Movers 12/7: (ANTH) (EMKR) (PLAY) Higher; (SIGM) (OHAI) (FTK) Lower
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Western Digital (WDC) Raises Q2 Outlook
- Biotech, Pharma Stocks Weaker Amid Trump Comments on Lower Drug Prices
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Dougherty & Co initiated coverage on EMCORE (NASDAQ: EMKR) with a Buy rating and a price target of $7.50. Analyst Joe Maxa thinks the company is well positioned for opportunities.
"Over the last two years, EMCORE sold two businesses, appointed a new CEO and several other executives, re-focused its business strategy, returned significant cash to investors through a buyback and special dividend totaling $85 million, while continuing to invest in its core business. The company is a leader in mixed signal optics and we believe is poised to benefit from an emerging multi-year CATV DOCSIS 3.1 upgrade cycle. In addition, the company’s initial multi-million dollar RFoG and fiber optic gyroscope orders suggest its addressable market is expanding meaningfully and that its revenue growth is about to accelerate. We estimate EMCORE’s revenue growth will exceed 15% in the coming years and that a focus on cost reduction/optimization can result in strong operating leverage and margin expansion. We believe these factors justify our Price Target which is based on 15x our FY17 Non-GAAP EPS estimate plus the cash on EMCORE’s balance sheet," said Maxa.
Shares of EMCORE closed at $5.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Seaport Global Securities Starts Beacon Roofing Supply (BECN) at Buy
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- MoffettNathanson Downgrades AMC Networks (AMCX) to Sell
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!