Integrated Device Technology (NASDAQ:IDTI) has been stuck below $15 for a number of weeks now, but increasingly bullish sentiment could cause a breakout in shares.
A.G. Edwards said that:
It is initiating coverage of Integrated Device Technology with a Buy/Speculative rating, and a $20 price objective. It believes IDT is well-positioned in a variety of $50-to-$500 million 'niche' semiconductor markets that are expanding along with Internet, and networked communications. IDT uses its expertise in silicon timing, interface, and memory design to capture share, as transitions in industry standards create opportunities in a variety of communications, consumer and computer markets. It thinks concern with near-term prospects has unduly punished IDTI's price recently. It sees renewed growth in the second half of 2007, and believes secular shifts and penetration gains in base sation switches, PC audio and switches, videogame and communications clocks, and network coprocessors will expand IDT's revenue base in the coming 18-24 months.
Several other sell-side firms have been behind IDTI with similar reports, however I think we will finally start to see the buy-side catch up to this, especially after recent meetings with management.