Mizuho Securities Cuts Price target on Cypress Semiconductor (CY) Following Divestiture

Mizuho Securities maintained a Buy rating on Cypress Semi (NASDAQ: CY), and cut the price target to $21.00 (from $23.00), following the divestiture of its mobile touch segment to Parade for approximately $100M. CY updated revenue guidance to be ~$25M lower, $15M due to the sale and $10M due to softness in China. EPS impact was only about $0.005/qtr impact due to ~$7M/qtr Opex reduction.

Analyst Vijay Rakesh commented, "We are tweaking our estimates, lowering our PT to $21, and reiterating our Buy rating. CY recently announced it had completed the divestiture of its mobile touch segment to Parade on July 31 for approximately $100M. The company updated its revenue guidance in early August to include the handset touch sale and modest softening in China. We have tweaked our estimates in line with guidance. We continue to see CY re-positioning into the automotive and industrial markets (52% of revenue and growing) and driving margins and cost synergies."

For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.

Shares of Cypress Semi closed at $10.09 yesterday.

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