Live by the Apple, Die by the Apple
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Price: $442.14 --0%
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Trade AAPL Now!
Apple (Nasdaq: AAPL) can make or break small-mid semiconductor stocks. Working with Apple can do wonders for sales and a stock. Just look at the chart of Cirrus Logic Inc. (Nasdaq: CRUS) as a example. The stock is up 83 percent YTD as it now gets 60 percent of its revenue from the iPhone and iPad giant.
Today analysts at Goldman Sachs highlighted two names that aren't currently getting Apple revenues but could in the near future: InvenSense (Nasdaq: INVN) and Teradyne Inc. (NYSE: TER).
Goldman is calling these two a "Free Long-Term Apple Option" based on their current customer and market exposure.
The firm said while they do not expect an Apple design win before 2013 at the earliest for either company, each has a long-term opportunity to gain share at Apple. Also, the firm does not include the Apple potential in estimates or price targets for either company and does not believe it is reflected in the stock.
Goldman notes that the companies already offer similar or better sales growth and returns versus SMID-cap companies with high Apple exposure such as Cirrus Logic (Nasdaq: CRUS), Triquint (Nasdaq: TQNT) and Skyworks (Nasdaq: SWKS), yet they trade a similar or lower multiple on 2013 EBITDA and EPS.
Companies with high exposure to Apple are subject to potential share loss, which could create a substantial declines in their stocks. As a example, the firm notes Linear Technology Corp. (Nasdaq: LLTC) fell 16% in six months after it was designed out of the iPad 2. OmniVision Technologies, Inc. (Nasdaq: OVTI) was another one. Shares of OVTI ramped 68% in the six months post iPhone 4 release, but declined 57% in the three months before the 4S launch due to concerns about share loss.
Bottom line: investors may want to cut exposure to Cirrus Logic, Triquint and Skyworks and load up on InvenSense and Teradyne.
Goldman rates InvenSense at Buy with an $22 target and Teradyne at Buy with a $18 target.
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Today analysts at Goldman Sachs highlighted two names that aren't currently getting Apple revenues but could in the near future: InvenSense (Nasdaq: INVN) and Teradyne Inc. (NYSE: TER).
Goldman is calling these two a "Free Long-Term Apple Option" based on their current customer and market exposure.
The firm said while they do not expect an Apple design win before 2013 at the earliest for either company, each has a long-term opportunity to gain share at Apple. Also, the firm does not include the Apple potential in estimates or price targets for either company and does not believe it is reflected in the stock.
Goldman notes that the companies already offer similar or better sales growth and returns versus SMID-cap companies with high Apple exposure such as Cirrus Logic (Nasdaq: CRUS), Triquint (Nasdaq: TQNT) and Skyworks (Nasdaq: SWKS), yet they trade a similar or lower multiple on 2013 EBITDA and EPS.
Companies with high exposure to Apple are subject to potential share loss, which could create a substantial declines in their stocks. As a example, the firm notes Linear Technology Corp. (Nasdaq: LLTC) fell 16% in six months after it was designed out of the iPad 2. OmniVision Technologies, Inc. (Nasdaq: OVTI) was another one. Shares of OVTI ramped 68% in the six months post iPhone 4 release, but declined 57% in the three months before the 4S launch due to concerns about share loss.
Bottom line: investors may want to cut exposure to Cirrus Logic, Triquint and Skyworks and load up on InvenSense and Teradyne.
Goldman rates InvenSense at Buy with an $22 target and Teradyne at Buy with a $18 target.
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