Needham & Company Raises PT Following MaxLinear's (MXL) Positive 4Q Pre-Announcement

Needham & Company reiterated a Buy rating on MaxLinear (NYSE: MXL), and raised the price target to $19.00 (from $18.00), following the company's positively pre-announced 4Q15 ahead of investor meetings at CES. Citing strength across the company’s business toward the end of the quarter, management has improved visibility into 1Q16 and provided preliminary 1Q16 revenue guidance of flat to up 5% Q/Q or to a range of $99MM-$104MM. Management attributes the better than expected strength to demand for its satellite and cable front-end ICs, legacy video SoCs for HD DTA programs and a continued ramp in it PhySpeed optical interconnect products.

Analyst Quinn Bolton commented, "MXL positively pre-announced 4Q15 ahead of investor meetings at CES. We hosted a management meeting following the positive preannouncement. We believe management's confidence in the business has increased driven by increasing visibility into near-term business conditions, confidence of maintaining if not growing share in the DOCSIS cable modem segment, the ramp of its satellite gateway and ODU business and stronger than expected demand for its linear drivers for 100G long-haul optical modules. Accordingly, we are increasing our forward estimates and raising our 12-month PT to $19, or 12x our CY17 NG EPS estimate, from $18. With the stock down 24% since December 2, we strongly encourage investors to BUY the dip as business fundamentals remain sound and valuation remains compelling."

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

Shares of MaxLinear closed at $13.49 yesterday.

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