Needham & Company Upgrades Magnachip Semiconductor (MX) to Buy

Needham & Company upgraded Magnachip Semiconductor (NYSE: MX) from Hold to Buy with a price target of $10.00.

Analyst Rajvindra S. Gill comments "We are upgrading MagnaChip to BUY from HOLD following a positive pre-announcement (raising revenue guidance to $180M in 4Q and GMs to 25%), and we are establishing a $10 price target. Our concerns over GMs have been alleviated with the growth in AMOLED and the recovery of the Foundry Services Group. Likewise, with a 5% upsized senior note offering of $75MM primarily targeted at cost reduction program, we believe MX can return to and accelerate its profitability trajectory in 2017/2018. Net, our $10 PT reflects MX’s return recovery efforts and a return to profitability, which we are assigning a conservative 0.81x EV/sales multiple on a 2017 vs comps range of 1.4-3.0x."

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

Shares of Magnachip Semiconductor closed at $6.65 yesterday.

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