Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Integrated Device Tech (NASDAQ: IDTI), Vonage Holdings (NYSE: VG) and SolarEdge Technologies (NASDAQ: SEDG).
Integrated Device Tech (NASDAQ: IDTI)
In a report released yesterday, Sujeeva De Silva from Roth Capital reiterated a Buy rating on Integrated Device Tech (NASDAQ: IDTI), with a price target of $28. The company’s shares opened today at $24.83.
De Silva observed:
“We believe IDTI represents a differentiated investment opportunity in high margin mixed-signal analog and power semiconductor products targeting a diversified base of end markets. With the acquisition of optical interconnect vendor GigPeak (GIG-NC), we believe IDTI bolsters its communications data center growth opportunity . We maintain our Buy rating. Acquisition Expands Markets and Products. IDTI announced an all-cash acquisition of optical interconnect vendor GIG for $3.08 per share, which represents ~2.7x CY18 EV/Sales, consistent with broader communications infrastructure multiples. We expect the deal to close in 2Q17 and will update our model at that time, but estimate that GIG can add just under 10% to IDTI’s revenue run-rate. Furthermore, with above corporate average GIG gross margins of 70% we expect immediate EPS accretion from the deal. To finance the deal, IDTI will add $200m of debt to its balance sheet, but maintain a manageable pro forma debt/EBITDA of ~2.5x. While some operating synergies are expected, we expect IDTI to sustain the vast majority of GIG’s product/market efforts.”
According to TipRanks.com, Silva is a top 100 analyst with an average return of 21.4% and a 66.7% success rate. Silva covers the Technology sector, focusing on stocks such as Semiconductor Manufacturing, Adesto Technologies Corp, and Advanced Micro Devices.
Currently, the analyst consensus on Integrated Device Tech is Moderate Buy and the average price target is $27.40, representing a 10.4% upside.
In a report issued on January 31, Needham also reiterated a Buy rating on the stock with a $28 price target.
Vonage Holdings (NYSE: VG)
According to TipRanks.com, Netis is a 5-star analyst with an average return of 11.4% and a 61.7% success rate. Netis covers the Technology sector, focusing on stocks such as Interactive Intelligence, Juniper Networks, and Arista Networks.
Currently, the analyst consensus on Vonage Holdings is Strong Buy and the average price target is $8.50, representing a 25.7% upside.
In a report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $8 price target.
SolarEdge Technologies (NASDAQ: SEDG)
“We had previewed the potential for weakness in the Q1 guide given the challenges in California due to weather and NEM 2.0 transitions. SEDG reported a healthy Q4 and issued strong Q1 guidance that surprised us on the topline as well as margins. The better-than-expected outlook is likely supported by volumes in EU and Asia offsetting weakness in the U.S. The company appears to be effectively evolving/diversifying away from the soft core U.S. market.”
According to TipRanks.com, Shen is ranked 0 out of 5 stars with an average return of -16.1% and a 25.1% success rate. Shen covers the Technology sector, focusing on stocks such as Maxwell Technologies, Orion Energy Systems, and Canadian Solar Inc.
Currently, the analyst consensus on SolarEdge Technologies is Moderate Buy and the average price target is $19, representing a 29.3% upside.
In a report released yesterday, Oppenheimer also reiterated a Hold rating on the stock.
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