Cypress Semi (CY) Estimates Raised at Needham & Company on 'Significant' Earnings Power

Needham & Company analyst Rajvindra Gill reiterated and $20 price target on Cypress Semi (NASDAQ: CY) while raising estimates, citing significant earnings power in 2016/2017.

Gill commented, "With the merger with CODE now complete, we are officially introducing our quarterly estimates for 2015-2016 (& pro-forma 2017). Ultimately, we remain bullish on the merger, and see the combined entity generating significant earnings leverage driven by +$100MM in annual OPEX and $35MM in COGS synergies in ‘17. Our base case for the combined entity is $1.10 Non-GAAP EPS in ‘16 and $1.35 in ’17. Moreover, our base case model does not include the effect from the CODE/XMC relationship, which could add an incremental $0.20-0.30 EPS to '17. With CY down ~11% vs the SOX down ~2% over the last three weeks, we view current levels as an attractive entry point."

The firm raised FY 2015 EPS from $0.56 to $0.66 and FY 2016 EPS from $0.70 to $1.10.

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 $14.11 yesterday.

You May Also Be Interested In

• BayCom Corp (BCML) Misses Q1 EPS by 4c
• DermTech (DMTK) to Explore Strategic Alternatives and Implement Restructuring Plan
• Hilltop Holdings (HTH) Tops Q1 EPS by 17c