UPDATE: Credit Suisse Raises PT on Cypress Semiconductor Corporation on Potential CODE Merger

In a report published Tuesday, Credit Suisse analyst John W. Pitzer reiterated a Neutral rating on

, and raised the price target from $9.50 to $12.00. In the report, Credit Suisse noted, “CY has successfully repositioned itself from a low margin memory company into a provider of value-added and proprietary solutions, as evidenced from the 50+% revenue contribution from non-memory products such as PSoC microcontrollers, USB controllers and TrueTouch touch screen controllers. In the near-term, we are concerned with the uncertain growth trajectory in TrueTouch given expected continued deceleration of Handset unit growth and weaker ASP trends as a meaningful headwind NT. Longer-term, we expect to see increasing competition in the touch controller market, which will likely pressure profitability, though the potential merger with CODE and subsequent synergies should drive EPS upside through CY16.” Cypress Semiconductor Corporation closed on Monday at $12.78.