Feltl & Co Starts Pixelworks (PXLW) at Buy

Feltl & Co initiated coverage on Pixelworks (NASDAQ: PXLW) with a Buy rating and a price target of $8.50. Analyst Jeffrey A. Schreiner thinks growth opportunities are expanding and he sees potential to outgrow comps.

"Given we anticipate PXLW can significantly outgrow its comps, we believe a premium multiple could be warranted. However, opportunities in mobile remain in their infancy, and projected growth resurgence in digital projectors could stall out following the release of all models utilizing the new co-developed SoC," said Schreiner.

"TV remains a wildcard with potential for near-term licensing opportunities, but it is our belief any resurgence of IC growth within TV is a longer-term proposition. We believe an in-line multiple with PXLW comps is more appropriate at this time. Assuming an in-line comp forward P/E multiple of roughly 17x, applied to our CY16 non-GAAP EPS estimate of ~$0.50, we derive our price target of ~$8.50. We recommend investors accumulate shares of PXLW at current levels as we believe multiple growth opportunities are emerging which could push PXLW’s share price meaningfully higher from recent levels," he added.

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

Shares of Pixelworks closed at $6.44 yesterday.

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