O2 Micro International (OIIM) PT Lowered to $5.50 at Stifel

Stifel analyst Tore Scanberg lowered the price target on O2 Micro International (NASDAQ: OIIM) to $5.50 (from $6.00) while maintaining a Buy rating following results.

The analyst commented:

• "Delivers moderate June-quarter beat with revenue of $22.1mn, +2.0% q/q (+2.1% versus our prior estimate) and NG EPADs of $0.04 (+$0.01 versus our estimate).
• September-quarter outlook materially lowered to $18.0mn (-30.6% below our prior estimate) primarily due to the inventory build in battery management (especially with softer demand in power tools/ vacuum cleaners), while the majority of the correction remains limited to 3Q22E and expected to improve by 4Q22E.
• Nevertheless, we highlight the company’s: (1) Easing of wafer capacity constraints in Intelligent Lighting; and (2) Solid design win momentum in Battery Mgmt./Lighting, especially for (3) Automotive applications, where we believe OIIM is already gaining early traction for lighting products (with initial product launches for module makers on track for 4Q22E).
• Coupled with the take-private proposal of $5.50/ADS from a private equity fund, we maintain our Buy rating and adjust our TP to $5.50 (1.4x CY23 EV/S) from $6.00."

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