Needham & Company Downgrades MEMSIC Inc. (MEMS) to Hold; Checking Valuation After Recent Run-up
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Price: $4.07 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MEMS Now!
Needham & Company downgraded MEMSIC Inc. (NASDAQ: MEMS) from Buy to Hold.
Analyst, Vernon Essi, Jr. said, "MEMS shares have risen about 40% over the last two trading sessions, due primarily, in our view, to a bullish initiation report issued by a competitor. While we believed MEMS shares were undervalued, especially below $3.50, the current price of $5.20 is above our $5 price target and we believe they are overbought at this point. The competitive bullish thesis is built on the opportunity MEMS has with their magnetometer (digital compass) in handsets; however, we find fault with the expectation that there is continued
momentum for this functionality on a stand-alone basis compared to solutions provided by much larger IDMs that we see as more efficient and integrated. And we philosophically disagree that there is a sustainable business model in ICs chasing the tail of the units/customer Pareto distribution."
For an analyst ratings summary and ratings history on MEMSIC Inc. click here. For more ratings news on MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $5.20 yesterday, with a 52 week range of $1.97-$5.44.
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Analyst, Vernon Essi, Jr. said, "MEMS shares have risen about 40% over the last two trading sessions, due primarily, in our view, to a bullish initiation report issued by a competitor. While we believed MEMS shares were undervalued, especially below $3.50, the current price of $5.20 is above our $5 price target and we believe they are overbought at this point. The competitive bullish thesis is built on the opportunity MEMS has with their magnetometer (digital compass) in handsets; however, we find fault with the expectation that there is continued
momentum for this functionality on a stand-alone basis compared to solutions provided by much larger IDMs that we see as more efficient and integrated. And we philosophically disagree that there is a sustainable business model in ICs chasing the tail of the units/customer Pareto distribution."
For an analyst ratings summary and ratings history on MEMSIC Inc. click here. For more ratings news on MEMSIC Inc. click here.
Shares of MEMSIC Inc. closed at $5.20 yesterday, with a 52 week range of $1.97-$5.44.
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