Summit Research Starts inTEST Corp. (INTT) at Buy

Summit Research initiates coverage on inTEST Corp. (NYSE: INTT) with a Buy rating and a price target of $6.50.

Analyst Srini Sundararajan said, "We launch INTT at BUY essentially because we think that, given their role in the semiconductor test supply chain, they are likely to be unit driven (i.e. number of units such as smartphones), where the units are growing secularly. inTEST's business has three product segments: Thermal, Mechanical and Electrical. Semiconductor manufacturers use INTT's products for wafer and packaged ICs testing. INTT's thermal and electrical products are used in both front-end and back-end testing of ICs in all chip segments. Their growing exposure to automotive and industrial in their non-semi business will be icing on the cake of burgeoning semiconductor units. Finally, we appreciate that INTT has kept most of their manufacturing stateside, and is still profitable, and two important locations provide skilled manuf. jobs in NJ and CA, where we're located."

He added, "We are launching INTT at BUY because trends appear stable for the next 1-1.5 years, insider ownership is at 27% and the company is cash rich with cash at $1.8 per share, so the rest of the company could be treated like an option. However, we caution that low-float stocks fly higher on upward momentum, but are also likely to be affected more in the whiff of a downturn. "

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

Shares of inTEST Corp. closed at $5.49 yesterday.

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