UPDATE: Oppenheimer Downgrades InvenSense (INVN) to Perform on Competition/Timing

April 1, 2014 8:04 AM EDT Send to a Friend
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Price: $15.32 -1.29%

Rating Summary:
    11 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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(Updated - April 1, 2014 10:52 AM EDT)

Oppenheimer downgraded InvenSense (NYSE: INVN) from Outperform to Perform and removed its price target (prior $20.00). Analyst Andrew Uerkwitz sees risk/reward as balanced, and he has concerns about competition and the timing of adoption of new segments.

"While we continue to view InvenSense as one of the best ways to invest in wearable technology, we are downgrading shares to Perform from Outperform (and removing our $20 PT) as we believe the Street may be underestimating the growing competitive pressure in the smartphone/tablet market and overestimating the timing of adoption of new segments, OIS and wearable electronics," said Uerkwitz.

"We do recognize the robust opportunities at Samsung and in China; thus, we update our model accordingly by raising our FY16 revenue/non-GAAP EPS estimates from $360M/$0.98 to $405M/ $1.05. Putting it together, we see the near-term risk/reward as more balanced and believe it will take flawless execution and a pull-forward of longer term drivers to substantiate the lofty valuation to maintain a more constructive view," he added.

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

Shares of InvenSense closed at $23.67 yesterday.


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