Needham & Company Reiterates Buy on GigOptix (GIG) Following Announced Record Datacom Shipments
- Wall Street drops as banks, health stocks weigh
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Morgan Stanley (MS) Tops Q4 EPS by 17c
- Trump, Brexit uncertainty hit stocks and dollar, gold jumps
- Pre-Open Stock Movers 01/17: (FWP) (CLSN) (GEVO) Higher; (ADHD) (CBK) (UEC) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Needham & Company reiterated a Buy rating and $3.50 price target on GigOptix (NYSE: GIG) following the company's announced record quarterly shipments of its 40Gbps QSFP+ and 100Gbps QSFP28 datacom ICs. GIG is the sole merchant provider of 40G SR solutions and the announcement indicates continued strong demand for 40G products despite the initial ramp of 100G LR solutions.
Analyst Quinn Bolton commented, "Ahead of this week's ECOC show in Germany, GigPeak announced record quarterly shipments of its 40Gbps QSFP+ and 100Gbps QSFP28 datacom ICs as well as the initial sampling of its 200Gbps PAM-4 drivers and TIAs. We view the announcement as a clear positive for the stock and forecast continued strength in 40G SR applications, where GIG is the sole merchant IC supplier, through 2018. We are further encouraged that GIG is rounding out its datacom portfolio with 100G/200G SR and LR products, which positions the company nicely for the 100G/200G ramp over the next several years. Despite a double-digit organic revenue growth rate and a NG GM of >70%, GIG shares trade at <2.0x 2017E sales. This is a significant discount to its peer group and to other high-gross-margin semiconductor companies. Reiterate Buy."
Shares of GigOptix closed at $2.18 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GigPeak Announces Record Fourth Quarter and Fiscal Year 2016 Preliminary Financial Results
- Needham & Company Downgrades Ceragon Networks (CRNT) to Hold
- Canaccord Genuity Starts Kratos Defense & Security (KTOS) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesNeedham & Company
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!