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. engages in the provision of semiconductor solutions that enable internet applications, cloud connected apps economy, and modern, networked battlefield across the radio frequency (RF), microwave, millimeterwave, and photonic spectrum. Its products include... More
Industry: Semiconductor - Broad Line
Country: United States