Needham & Company Upgrades Cypress Semi (CY) to Strong Buy

Needham & Company upgraded Cypress Semi (NASDAQ: CY) from Buy to Strong Buy with a price target of $20.00, suggesting 50% upside.

Analyst Rajvindra Gill commented, "CY reported its first consolidated quarter with CODE, and as expected it was messy, including several one-time charges. However, CY provided solid 2Q guidance reflecting ongoing strength in the standalone CY and CODE businesses as well as the start of the opex synergies. Importantly, CY increased its synergy target to $160MM from $135MM, which takes effect at the end of 2016/early 2017, and primarily driven by manufacturing savings. The shares have fallen ~20% from its peak on a vacuum of information as the merger was finalized. Now that CODE is fully integrated into the model and we have better visibility into the earnings power, we are upgrading to Strong Buy from Buy. Given the sell-off in the shares, plus the dividend yield, we see favorable risk/reward with 50%+ upside potential at current levels."

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

Shares of Cypress Semi closed at $13.32 yesterday.

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