Needham & Company reiterated a Buy rating on Sequans Communications (NYSE: SQNS), and raised the price target to $3.20 (from $2.50), following the company's 4Q earnings report. Sequans reported 4Q15 revenue and EPS of $11.0MM and ($0.07) that modestly exceeded Needhams $10.5MM and ($0.07) estimates. Management provided 1Q16 guidance in line with Needham's model, and reiterated its outlook for strong sequential growth beginning 2Q16 as new IoT/M2M designs ramp.

Analyst Quinn Bolton commented, "Sequans reported 4Q15 revenue slightly ahead of our estimate. Management provided 1Q16 guidance in line with our model and reiterated its outlook for strong sequential growth beginning 2Q16 as new IoT/M2M designs ramp. Importantly, SQNS announced a strategic partnership with Verizon for the development of CAT M devices. We view this partnership as a significant endorsement of SQNS' narrowband LTE technology and believe it will enable SQNS to maintain its first mover position in cellular connectivity for IoT/M2M devices as the market moves to CAT M in 2017. Reflecting the strong revenue ramp and funding from strategic partnerships, we believe the company is funded through cash flow B/E and will not have to return to the capital markets. We reiterate our Buy rating and increase our PT to $3.20 based on our new 2017 estimates."

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Shares of Sequans Communications closed at $1.95 yesterday.