Wedbush Upgrades Integrated Device Technology (IDTI) to Outperform

Wedbush upgraded Integrated Device Technology (NASDAQ: IDTI) from Neutral to Outperform with a price target of $27 (from $26).

Analyst Betsy Van Hees commented, "We maintained our NEUTRAL rating heading into the print because we believed a lot was already priced in given our view that the Street had not adequately modeled in the recent acquisition of ZMDI and our concerns that 1) near-term growth in memory interface products was moderating, 2) the lumpiness in Communication, and 3) uncertainty on the trajectory of wireless charging. We were also worried that even with the recent pull back, a miss to the Street's estimates for FQ4 could cause another pull back and we recommended that investors wait for a better entry point. We are upgrading IDTI to an OUTPERFORM rating as we believe 1) the story is intact: IDTI is poised for Q/Q earnings and revenue growth in FY:17 driven by i) cost synergies and cross selling from the ZMDI acquisition, ii) return to growth in DDR4, particularly LRDIMM from ramp of Broadwell, and iii) ramp of wireless charging at Tier 1 OEMs, 2) that all of our near-term concerns are factored in to the Street’s reset to estimates, and 3) with the stock down -15+% in AHs trading that we are getting the entry point/pull back we were looking for and recommend investors buy the stock. Our 12-month PT of $27 is based upon about 16x our CY:16 pro forma EPS estimate of $1.54 plus $2.39 in cash per share."

For an analyst ratings summary and ratings history on Integrated Device Technology click here. For more ratings news on Integrated Device Technology click here.

Shares of Integrated Device Technology closed at $25.50 yesterday.

You May Also Be Interested In

• MarineMax (HZO) PT Lowered to $35 at Stifel
• First Cash Financial (FCFS) PT Lowered to $140 at TD Cowen
• Tyler Tech (TYL) PT Raised to $500 at Oppenheimer