Ashraf Eassa
Long/short equity, contrarian, independent research, tech

GSI Technology: Raising Price Target Significantly In Light Of Secular And Structural Tailwinds

Often when it comes to underfollowed situations, it is all too easy to miss the forest for the headline trees. GSI Technology (NASDAQ:GSIT), a small, cash rich developer of SRAM technology, reported its quarterly results after the close on 7/25. In my initial thesis, I noted that the company's financial results were adversely affected by a patent lawsuit levied against the firm by Cypress Semiconductor (NASDAQ:CY). Following the resolution of the infringement claims in GSI Tech's favor, I believed that sales would pick up and profitability would improve. Following the results, I believe that the thesis remains valid and significant upside still exists, despite a ~10% run in under a month.

An Excellent Quarter, Major Headwind...

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