Roth Capital Reiterates Buy on GigOptix (GIG) Following Terasquare Acquisition

Roth Capital reiterated a Buy rating and $4.00 price target on GigOptix (NYSE: GIG) following Terasquare (Korea) acquisition. Analyst Krishna Shankar believes that this acquisition will potentially double GIG's revenue opportunity in datacenters by adding clock and timing-related chips (CDR) to GIG's leading position in optical line drivers and TIAs for 40Gbps and 100Gbps applications.

Shankar commented, "We believe that the Terasquare (Korea) acquisition potentially doubles GIG's revenue opportunity in datacenters by adding clock and timing-related chips (CDR) to GIG's leading position in optical line drivers and TIAs for 40Gbps and 100Gbps applications. We believe that growth drivers for GIG include new 100Gbps telecom drivers for long-distance/metro, 40G and 100G datacenter active optical cable drivers, and industrial ASIC segments. We believe GIG's valuation is attractive at 9x our CY16 EPS estimate, 1.1x EV/TTM revs and 1.5x book-value."

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

Shares of GigOptix closed at $1.76 yesterday.

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