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UPDATE - Barclays Initiates Coverage on CEVA Inc. (CEVA) with an Overweight; The Next 'ARM' of Growth in Mobile

April 13, 2011 12:45 PM EDT
CEVA Hot Sheet
Rating Summary:
    9 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
UPDATE - Barclays initiates coverage on CEVA Inc. (NASDAQ: CEVA) with an Overweight. PT $32.

Barclays analyst says, "We see three key reasons to own CEVA: 1) Ceva is the market leader in baseband DSP architecture and should grow from 36% to 55% share over the next two years; 2) Ceva enters the 4G/LTE market with a strong customer base and position, in 2G/3G it had to catch up; 3) Ceva is well positioned for next-generation DSP growth in emerging mobile applications."

"Lumpiness, market trends and valuation: As a small IP company Ceva's largest risks are short-term volatility and market shifts. We believe that the growth opportunity and peer analysis supports our use of a 30x 2012e non-GAAP EPS to drive our $32 price target, subtracting cash the P/E drops to 24x. We recognize that the richness of the valuation leaves little room for execution error."

To see all upgrades/downgrades on shares of CEVA, visit our Analyst Ratings page.


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