Needham & Company Reiterates Buy on MaxLinear (MXL) Following 3Q Beat
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Needham & Company reiterated a Buy rating on MaxLinear (NYSE: MXL), and raised the price target to $22.50 (from $21.00), following the company's 3Q earnings report. MXL reported revenue and Non-Gaap EPS of $96.3MM and $0.43, ahead of consensus estimates of $95.9MM and $0.40. Management guided 4Q revenue to $85-$89MM, below consensus of $88.2MM.
Analyst Quinn Bolton commented, "MXL reported better than expected 3Q16 results but issued 4Q16 guidance below expectations due to a faster than expected decline in its legacy analog CSS and video SoC revenue streams. Importantly, the outlook for the core operator and infrastructure businesses remains intact. As the legacy revenue streams are not core to our investment thesis, we are not concerned by the faster than expected decline and the resulting modest reductions to our 4Q16 and 2017 estimates. Rather, with the core operator and infrastructure businesses intact, we now see more pronounced revenue inflection and mix shift toward higher margin infrastructure revenue, which we expect to drive multiple expansion. We reiterate our Buy and introduce our 2018 estimates. Based on 15x our CY18 NG EPS estimate, we increase our 12 month PT to $22.50 from $21."
Shares of MaxLinear closed at $18.99 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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