Needham Remains a Buy on Everspin Technologies Inc (MRAM)

Needham analyst Rajvindra Gill maintained a Buy rating on Everspin Technologies Inc (MRAMResearch Report) today and set a price target of $14. The company’s shares closed yesterday at $8.39.

Gill said:

“Everspin posted a solid 4Q18 but guided 1Q19 revenue below our est. due to a reduction in Toggle revenue by a major automotive customer. We believe there was a misalignment with the company’s new business objectives. On the positive side, based on the current design win pipeline, expanding presence at STT-MRAM ramp, MRAM expects Q/Q growth in the 2H19. Moreover, we look for the GM to trend toward the target range of 55% as yields have improved. We believe the company has done a good job in reducing its cash burn (OCF burn was down 22% Y/Y) and OPEX should be managed flat-to-down. Despite the slight hiccup in 1Q, we see the long-term trend towards industry MRAM adoption as positive and we believe Everspin is the leading supplier in this space.”

According to TipRanks.com, Gill is a 5-star analyst with an average return of 11.3% and a 56.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Smart Global Holdings Inc, and Adesto Technologies Corp.

Everspin Technologies Inc has an analyst consensus of Moderate Buy, with a price target consensus of $14.

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Based on Everspin Technologies Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $5.63 million. In comparison, last year the company had a GAAP net loss of $4.38 million.

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Everspin Technologies, Inc. engages in the provision of magnetoresistive random access memory (MRAM) solutions. Its products store data as a magnetic state and is offered as either a discrete or embedded solution.

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