Needham & Company reiterates a Buy rating on Sigma Designs (NASDAQ: SIGM), and raised the price target to $13.00 (from $10.00), following F1Q16. SIGM reported revenue of of $55.1MM compared to $52.5MM estimates, and non-GAAP EPS of $0.09, above $0.01 estimates.

Analyst Quinn Bolton commented, "SIGM reported better than expected F1Q16 results and F2Q16 guidance driven by strength in SmartTV, defying typical seasonality. We anticipate increasing customer penetration and the ramp of new design wins will result in sequential Smart TV revenue growth for the next two quarters. IoT shipments were also strong in F1Q16 and management announced Apple is increasingly likely to include Z-Wave support in its HomeKit offering. With SIGM now showing four sequential quarters of revenue growth and three sequential quarters of profitability, we are increasing our PT to $13 from $10 as we expand the valuation multiple to 1.5x from 1.0x EV/C2016 sales. Currently trading at an EV of ~0.95x CY16E sales, SIGM continues to trade at one of the lowest EV/sales multiples in our coverage universe. We reiterate our Buy rating."

Bolton also added, "SIGM guided F2Q16 revenue to $54-57MM, above our $53.5MM estimate. GM guidance of 49-52% bracketed our 49.7% estimate. Management expects both IoT and Smart TV revenue to grow Q/ Q, but expects a decline in Media Connectivity sales and relatively flat sequential revenue in STB/IPTV"

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Shares of Sigma Designs closed at $8.94 yesterday.