UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on Cypress Semiconductor Corporation on Upside from CODE Merger

In a report published Wednesday, Sterne Agee analyst Vijay Rakesh reiterated a Buy rating on Cypress Semiconductor Corporation CY, and raised the price target from $13.00 to $18.00. In the report, Sterne Agee noted, “We take a deeper look at the CY-CODE merger. With CODE bringing 8"-30K wpm capacity (only 70% utilized), ~4x the capacity of CY-6"-16Kwpm (or 8kwpm of 8") and leading 60nm node, a big footprint in Japan and scale in Autos to CY, we see a long-term constructive road map for CY. Our DCF is attached. Reiterating CY-Buy and raising PT to $18. A semis-deep dive into the significant CY synergies is below.” Cypress Semiconductor Corporation closed on Tuesday at $12.93.