Benchmark Raises Price Target on Tessera Technologies (TSRA) to $53

Benchmark reiterated a Buy rating on Tessera Technologies (NASDAQ: TSRA), and raised the price target to $53.00 (from $45.00).

Analyst Gary Mobley commented, "We are increasing our price target on shares on Tessera from $45 to $53. The higher price target is based on 15.0x applied to our newly published FY18 revenue/EPS (NG) estimates of $512M/$3.56 (note: FY18 is the first full year of DTSI revenue and EPS accretion contribution; 1Q FY17 includes only one month of full DTSI results per accounting rules relating to acquired royalty revenue). Additionally, we are adding Tessera to Benchmark's list of Top Ideas for 1H 2017. As we previously highlighted, main benefits of the DTSI acquisition include: 1) appx. $0.80 of instant EPS accretion (bringing FY17 EPS power to ~$2.95; implied valuation at 15.0x EPS power), 2) cross market sales synergies (FotoNation strong in mobile; DTS strong in auto) and 3) product roadmap synergies between the FotoNation and DTS teams."

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

Shares of Tessera Technologies closed at $44.85 yesterday.

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