Needham & Company Starts DSP Group (DSPG) at Buy

Needham & Company initiates coverage on DSP Group (NASDAQ: DSPG) with a Buy rating and a price target of $11.00.

Analyst Rajvindra S. Gill comments, "We are initiating coverage on DSP Group, a provider of chipsets for VoIP, multimedia, and digital cordless applications, with a Buy rating and $11 price target. We believe DSP Group is at an inflection point, with several new product offerings poised to offset the declining digital cordless chipset market, allowing the company to return to growth after four years of declining revenue. Our sum-of-the-parts analysis indicates that the market is effectively valuing the new growth segments (enterprise desktop VoIP phones, noise cancellation, and IoT) at zero. The legacy segment is worth $3/share based on our 10-year DCF, and we estimate that the new growth segments are worth $3/share and that DSPG has $5/net cash share. We see upside of 30%+ for the shares."

For an analyst ratings summary and ratings history on DSP Group click here. For more ratings news on DSP Group click here.

Shares of DSP Group closed at $8.59 yesterday.

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