Sterne Agee Sees 36% Upside In CEVA (CEVA)
Sterne Agee is reiterating its Buy rating and $15 price target on shares of CEVA, Inc. (NASDAQ: CEVA) as the company continues to be a supplier of iPhone parts.
In the research report to clients, Sterne Agee writes, "Bullet point. Bullet summary point We believe CEVA continues to be a solid execution Bullet point. Bullet key handset OEMs such as AAPL on the story supplying to summary point iPhone 4 and iPad 3G. CEVA supplies the IP for the baseband chip on the AAPL iphone+3G-iPad. We believe Apple (AAPL, $239.93, Buy) will potentially grow its handset shipments 50-100% Y/Y in 2011 providing continuing royalty revenue tailwinds for CEVA."
Sterne Agee goes on to say, "We believe CEVA is an under the radar, solid story for 2011 and will continue to be a steady execution story as it gains baseband market share. Reiterating our Buy rating and $15 PT with steady wins and market share gains ahead."
Shares of CEVA closed at $11.55, a gain of 35 cents, despite a broadly weaker market.
