MaxLinear (MXL) PT Raised to $50 at Needham After Beat/Raise Was Constrained by Supply

Needham & Company analyst N. Quinn Bolton raised the price target on MaxLinear (NYSE: MXL) to $50.00 (from $45.00) after the company reported better than expected 1Q21 results and 2Q21 guidance despite supply constraints that were a headwind, specifically in Connectivity. While Connectivity is expected to rebound Q/Q, Broadband is expected to be impacted by the constraints in 2Q21. However, despite the challenges, Infrastructure grew 61% Q/Q in 1Q21 as wireless backhaul and HPA sales grew the company's 5G cellular transceiver entered production.

The analyst reiterated a Buy rating, stating "MaxLinear's key DC 400G PAM4 customer remains on track to ramp in 2H21. We are increasing our estimates and PT to $50, based on an EV of ~4.9x our new CY22 sales estimate of $885.0MM. Our prior PT of $45 reflected an EV of ~4.5x our prior CY22 sales estimate. We believe MXL's multiple will expand as the company grows its Infrastructure business and integrates the acquired Intel assets".

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