CEVA Inc. (CEVA) PT Lowered to $58 at Oppenheimer

Oppenheimer analyst Andrew Uerkwitz lowered the price target on CEVA Inc. (NASDAQ: CEVA) to $58.00 (from $70.00) while maintaining an Outperform rating.

The analyst commented, "CEVA reported above-consensus 3Q21 results, led by licensing sales (+74% incl. full Q of Intrinsix). Licensing was particularly strong for Wi-Fi 6 (+149% Y/Y) and NB-IoT (+356%). However, royalty sales saw base station and IoT at all-time highs offset by handset baseband weakness. Overall operating margin (non-GAAP) rose to 18%, up Y/Y and Q/Q. With full integration of Intrinsix in 3Q, gross margin nevertheless beat expectations, due to allocation of more NRE costs to R&D in the Q. Quarterly cost allocation may affect future margins. Mgmt highlighted supply chain constraints as the headwind impacting 5G base station RAN visibility. We moderate our '22E as a result. Reiterate Outperform and lower PT to $58 from $70."

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