Magnachip Semiconductor (MX) Buy Rating Reiterated at Topeka Capital

Topeka Capital maintained a Buy rating on Magnachip Semiconductor (NYSE: MX) with a price target of $17.00. Comments follow news its CEO is retiring.

Analyst Suji De Silva said, "MX indicated yesterday that Chairman and CEO Sang Park, age 67, is retiring after ~8 years in the role. An interim-CEO, YJ Kim, has been appointed while a replacement search is conducted. We believe the appointed interim-CEO YJ Kim, who is currently head of the display business, has very strong semiconductor industry experience, and is well suited for the role. With the transition, the Chairman and CEO roles are being split up with board member Douglas Norby being appointed Chairman of the Board. With MX shares having stabilized somewhat over the last few weeks, we believe uncertainty here is being absorbed into the current share price, with the Company making progress toward refiling financial statements. We believe the current 8x P/E on our calendar 2014 estimate embeds the near-term uncertainty around this revision."

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

Shares of Magnachip Semiconductor closed at $12.99 yesterday.

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