Needham & Company Starts Xcerra Corporation (XCRA) at Hold

Needham & Company initiates coverage on Xcerra Corporation (NASDAQ: XCRA) with a Hold rating.

Analyst Y. Edwin Mok commented, "With a progressive acquisition strategy, Xcerra has transformed itself from a distanced number three Automated Test Equipment (ATE) player to a provider of broad-based test solutions. We appreciate the SAM expansion and added long-term growth drivers such as Internet of Things, the Test Cell and InCarrier for Wafer-Level Packaging (WLP). However, we are less confident on the near-term growth due to competition from large incumbents. Despite cost synergies from the Multitest/ECT acquisition, XCRA's OPEX remains highest among peers, suggesting that there should be opportunities for additional cost savings. Valuation looks low as we see several quarters of no growth preventing the stock from moving higher until growth drivers kick in."

For an analyst ratings summary and ratings history on Xcerra Corporation click here. For more ratings news on Xcerra Corporation click here.

Shares of Xcerra Corporation closed at $7.83 yesterday.

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