Needham & Company analyst Rajvindra S. Gill raised the price target on Sequans Communications (NYSE: SQNS) to $8.50 (from $7.50) while maintaining a Buy rating.

The analyst commented, "SQNS delivered higher than expected Q2 sales and guided in-line with the Street, citing growth in Broadband and Massive IoT. The Vertical and Strategic business remains on track for a big increase in '20, largely due to revenue recognition from '19 strategic deals. However, their results and outlook continue to be impacted by supply chain issues, coupled with COVID-related delays of certain Massive IoT projects as well as the postponement of a Verticals project to Q4 from Q3. We remain constructive on SQNS' ability to benefit from L-T trends in M2M communication and work-from-home, coupled with the potential for strong L-T growth in Verticals. We also expect supply issues to largely clear in Aug. We expect SQNS to grow 50%+ in FY20 and FY21. Thus, we are raising our PT to $8.50 (vs. $7.50), based on a 3.4x EV/sales our new FY21 sales est."