M/A-COM: A Semi Name That Can Take The Heat
Darspal S Mann
Darspal S Mann
You Can Benefit From M/A-COM's Acquisitive Strategy
Tue, Mar. 8, 7:05 PM
- The sanctions placed by the Commerce Department on U.S. parts/equipment sales to ZTE are just a "temporary setback" for optical component firm Oclaro (OCLR -15.4%), insists Piper's Troy Jensen. He thinks a majority of the Oclaro shipments due for ZTE can be sent to other Chinese equipment makers, and considers Oclaro's revised guidance "extremely conservative."
- Jensen adds the selloff seen today in RF chipmaker M/A-COM (MTSI -4.3%) was also unjustified, given ZTE isn't a major direct customers. Meanwhile, Northland Securities' Tim Savageaux has joined in defending Oclaro, asserting the sanctions are only a short-term issue for the company and that ZTE's optical system rivals will benefit from its woes.
- Oclaro peer Lumentum (LITE -3.3%) has issued a short PR after the close in which it states ZTE accounted for less than 1% of its sales during the first half of FY16 (ends in June), and that recent ZTE business levels "have not been material."
- Earlier: Optical component firms sell off after ZTE hit with sanctions
Fri, Jan. 29, 9:15 AM
Jun. 12, 2015, 1:22 PM
Dec. 29, 2014, 8:05 AM
- Needham Quinn Bolton is turning more cautious on chip stocks following a blistering 2014: Skyworks (NASDAQ:SWKS), RF Micro (NASDAQ:RFMD), TriQuint (NASDAQ:TQNT), Cavium (NASDAQ:CAVM), M/A-COM (NASDAQ:MTSI), and MaxLinear (NYSE:MXL) have been downgraded to Hold, and Ambarella (NASDAQ:AMBA) downgraded to Underperform.
- Bolton often cites valuation. Regarding Skyworks, he notes shares are "up 161% YTD in 2014, vs. 30.3% for the SOX Index and 15.1% for the NASDAQ Composite, and trading above [Needham's] prior price target of $70, or 14x our CY16E non-GAAP EPS estimate."
- Likewise, Bolton notes RF Micro and TriQuint, who will be jointly known as Qorvo starting on Jan. 1, have exceeded his respective targets of $16.50 and $27.50 (12x 2016E EPS), and would prefer to see if a buying opportunity emerges in 1H15. Cavium is trading above Needham's $58 target (based on a DCF valuation model).
- Regarding Ambarella, he cites not only valuation, but also a belief the video processor vendor could underperform in 2015 due to slowing revenue growth, gross margin pressure, and price pressure from top customer GoPro. "A more challenging cable outlook and a push-out in the ramp of its satellite gateway and ODU opportunities" are cited as reasons for downgrading MaxLinear.
- SWKS -1.2% premarket. RFMD -1.1%. TQNT -1.9%. AMBA -3.5%.
- Last Friday: Chip industry growth expected to slow following strong 2014
- Bullish opinions: Brean, Rosenblatt
Oct. 21, 2013, 10:04 AM
- SolarCity (SCTY +7.3%) has been started at Buy by BofA/Merrill.
- Salesforce (CRM +2.1%) has been upgraded to Strong Buy by Raymond James.
- Activision (ATVI +1%) has been started at Overweight by Barclays.
- MA-Com (MTSI +2.7%) has been upgraded to Overweight by Stephens.
- Russian carriers VimpelCom (VIP -0.5%) and MTS (MBT -1.8%) have been cut to Hold by Deutsche, and so has Aixtron (AIXG +3.2%)
- NII Holdings (NIHD -4.3%) has been cut to Underperform by Credit Suisse.
- Celestica (CLS -1.4%) has been cut to Hold by Canaccord.
- Aruba (ARUN +1.7%) has been started at Outperform by Northland.
- Applied Optoelectronics (AAOI +10.9%) has been started at Strong Buy by Raymond James.
- Xoom (XOOM +6.9%) has been started at Buy by SunTrust.
- Montage (MONT -0.4%) has been assigned five bullish ratings, and no neutral/bearish ones, on underwriter coverage day.
May 8, 2012, 5:12 PMM/A-COM Technology Solutions Holdings (MTSI): FQ2 EPS of $0.28 in-line. Revenue of $77.5M (+6.2% Y/Y) beats by $0.3M. Shares -5% AH. (PR) | May 8, 2012, 5:12 PM
MACOM Technology Solutions Holdings, Inc. operates as a holding company. The company provides semiconductor solutions for use in wireless and wire line applications across the radio frequency, microwave, and millimeter wave spectrum through its primary operating subsidiary M/A-COM Technology... More
Industry: Semiconductor - Broad Line
Country: United States
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