Needham & Company Reiterates Buy on Cypress Semiconductor (CY) Following Investor Call

Needham & Company reiterated a Buy rating and $14.00 price target on Cypress Semiconductor (NASDAQ: CY) after hosting an investor call with management. The acquisition of Broadcom’s IoT division increases Cypress’ automotive opportunity from $95 to $120 per car via the increase in connectivity products. Broadcom’s IoTs business generated ~$189MM in revenue last year. This past quarter the business generated $62.6MM in revenue and is guided to generate $60-65MM in Q4.

Analyst Rajvindra Gill commented, "Yesterday, we hosted an investor call with Mike Hogan, GM of IoT products, and Thad Trent, CFO of Cypress Semiconductor. Cypress is a leader in advanced embedded system solutions for automotive, industrial, home automation, consumer electronics and medical products. The company produces SoCs, microcontrollers, analog IC's, and connectivity solutions (wireless and USB) for the IoT segment. CY is leveraging the recently acquired Broadcom WICED platform and wireless assets to provide a complete IoTs developer ecosystem. IoT revenue accounted for 12% of sales as of the most recent quarter, and will grow to 15%, in our view, over the next 1-2 years. Below are our key takeaways."

For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.

Shares of Cypress Semi closed at $11.22 yesterday.

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