Wunderlich Securities: Standard Microsystems Strong in all Segments
According to a research report from Wunderlich Securities this morning, Standard Microsystems (NASDAQ: SMSC) reports high growth in the Auto and Wireless Audio business following an announcement from Microchip (NASDAQ: MCHP) to acquire them for $37/share.
Wunderlich Securities explained, “We believe Microchip has made good use of its cash to acquire a strong IP portfolio and complementary technologies and customers from what was an undervalued enterprise. In addition, there are two strong growth businesses in Auto and Audio and the deal will be accretive in the first full quarter with a strong potential for margin expansion from the SMSC business going forward.”
Standard Microsystems closed Friday at $31.90 as Wunderlich Securities maintains its Hold rating.
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