Oppenheimer's InvenSense downgrade: Competition, product timing cited


Oppenheimer's Andrew Uerkwitz, who downgraded InvenSense (INVN -3.9%) to Market Perform this morning, thinks "the Street may be underestimating the growing competitive pressure" in the company's core smartphone/tablet motion sensor market.

Uerkwitz also believes investors could be overestimating the speed at which InvenSense's offerings are adopted for smartphone optical image stabilization and wearables applications.

Nonetheless, he's raising his FY16 (ends March '16) revenue and EPS forecasts to $405M and $1.05 (a 22x forward P/E) from a prior $360M and $0.98 on account of "robust opportunities" in China, and with 30%+ customer Samsung.

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Comments (8)
  • Stone Fox Capital
    , contributor
    Comments (9636) | Send Message
     
    so he downgrades the stock but upgrades the numbers... hmmm
    1 Apr 2014, 01:09 PM Reply Like
  • User 7222921
    , contributor
    Comments (356) | Send Message
     
    He's hedging his bets. That way whichever way it goes he is not totally wrong.
    1 Apr 2014, 02:45 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1571) | Send Message
     
    Is competitive pressure growing? Thus far it has been mostly INVN and STM in this business with INVN progressively gaining market share. Is someone else entering the field? If they are, I have not heard anything about it.
    1 Apr 2014, 01:24 PM Reply Like
  • MJ Pragmatist
    , contributor
    Comments (400) | Send Message
     
    Apple bought the vendor that supported the Xbox controller. Could he be referring to that somehow?
    1 Apr 2014, 10:02 PM Reply Like
  • jbanik
    , contributor
    Comments (2) | Send Message
     
    Does not make any sense.
    1 Apr 2014, 02:14 PM Reply Like
  • Ridinhi
    , contributor
    Comments (5) | Send Message
     
    I think the 1.6% plunge in average volume speaks volumes.
    2 Apr 2014, 01:36 AM Reply Like
  • Budavar
    , contributor
    Comments (1404) | Send Message
     
    One of the most confusing + contradictory if not irresponsible rating change mishmash I have ever seen!

     

    As a former senior security analyst + director of research =
    Am I allowed to blush in shame?
    2 Apr 2014, 02:14 AM Reply Like
  • carloswolf
    , contributor
    Comments (11) | Send Message
     
    Agreed
    5 Apr 2014, 03:47 AM Reply Like
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