UPDATE: Stifel Nicolaus Reiterates Buy Rating, Raises PT on Exar Corporation on Continued Turnaround

In a report published Thursday, Stifel Nicolaus analyst Tore Svanberg reiterated a Buy rating on Exar Corporation EXAR, and raised the price target from $14.00 to $15.00. In the report, Stifel Nicolaus noted, “Last year (FY13), the focus was on cutting costs and improving financials through improved operations and streamlining. This year's (FY14) focus is on delivering consistent top line growth and overall profitability improvements. Estimates remain essentially unchanged as higher revenue is offset by increases in OpEx due to recent acquisitions. We believe the acquisitions will over time prove to be significantly accretive to earnings. Turnaround continues and path towards $200mn in annual revenue seems attainable. At that level, company should be able to deliver GMs of 55%, OMs of 25%, and $1.00+ in non-GAAP EPS.” Exar Corporation closed on Wednesday at $12.32.