DSP Group (DSPG) PT Raised to $12.50 at Needham & Company

Needham & Company analyst Rajvindra Gill reiterated a Buy rating and rasied his price target on DSP Group (NASDAQ: DSPG) to $12.50 (from $11.00) after the company posted a solid qrt and provided additional insight on the growth trajectory of its new products.

Gill commented, "We are increasing our price target to $12.50 (vs. $11), which reflects a conservative 1.1x EV/sales on our '17 ests. With nearly 50% of the market cap in cash and DSPG moving towards sustainable revenue growth through its new product initiatives (HD Clear, VoIP and IoT), we believe valuing the company on enterprise value to sales is an appropriate metric. Further, DSPG benefits from higher gross margins with the migration towards new products, and together with disciplined OPEX, we see potential operating leverage in the model over the next 12-24 months. Increasing PT to $12.50."

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

Shares of DSP Group closed at $10.83 yesterday.

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