RF Micro Devices (RFMD) Continues to Impress, PT Raised to $15 - Ascendiant Capital

Ascendiant Capital analyst analyst Cody Acree reiterated a Buy rating and boosted his price target on RF Micro Devices (NASDAQ: RFMD) price target of $15.00 (from $13.00)

Acree comments, "After growing gross margin from 35% to 42% in the prior four quarters, RFMD continued this impressive run with a sequential expansion of over 500 bps in the June quarter, easily another all-time margin high. Following the strong numbers from the other RF players, we weren’t particularly surprised to see similar revenue trajectory from RFMD, with the firm delivering 24% sequential sales growth, driven by broad strength in CPG & MPG, with CPG seeing solid demand from tier-1 OEMs and broadly throughout China. Year-over-year, gross margin increased over 1,200 basis points, while solid expense reductions added 1,500 bps to operating margins. The firm expects further gross and operating margin expansion as it works through the remainder of its 75+ differing initiatives to improve cost."

The firm raised FY 2015 EPS from $0.81 to $1.01 and FY 2016 EPS from $0.95 to $1.05.

For an analyst ratings summary and ratings history on RF Micro Devices click here. For more ratings news on RF Micro Devices click here.

Shares of RF Micro Devices closed at $10.53 yesterday.

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