M/A-COM Technology Solutions (MTSI) PT Raised to $54 at Needham & Company

Needham & Company raised its price target on M/A-COM Technology Solutions (NASDAQ: MTSI) to $54.00 (from $49.00) while maintaining a Buy rating following Q1 results.

Analyst N. Quinn Bolton commented, "MTSI delivered in line F1Q17 revenue and NG EPS despite weaker than expected NG GM due to a reduction in high margin PON laser revenue despite overall strength in Optical. Guidance for F2Q17 includes recently acquired AMCC, with management noting the core MTSI business is tracking in line with prior expectations. We adjust our estimates to include higher core MTSI revenue, lower core MTSI GM and a conservative forecast for AMCC revenue. The net effect of these changes are a modest increase in our NG EPS estimates. With the LH/metro optical outlook still robust, data center revenue ramping, A&D poised for 40% Y/Y growth and increasing traction in GaN-on-Si PAs, we reiterate our Buy rating and raise our PT to $54 from $49."

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