Stifel Reiterates Buy Rating, Raises PT On Microsemi Following Analyst Day

In a report published Thursday, Stifel analyst Tore Svanberg reiterated a Buy rating on

, and raised the price target from $35.00 to $40.00. In the report, Stifel noted, "On Wednesday, March 18, 2015, Microsemi held its Analyst Day in New York, which included presentations by many key company executives outlining the company's strategic direction, growth drivers and product development initiatives, all with a key focus on getting to its 60%/30% target model. Overall, the company provided upbeat presentations for each of its primary businesses and management reiterated its strategy to maximize profitability, grow its market share in core products, while expanding its SAM through new product initiatives and deeper penetration into their existing customer base. The Company's news to acquire Vitesse Semiconductor helps expand its silicon/dollar content initiatives, especially in the comms infrastructure space and adds differentiated technology with high barriers to entry. With this deal, we believe the 60%/30% model is further enhanced (and accelerated) as further product/cost synergies get realized, which should drive improvements to the overall mix and yield higher returns through a complementary technology offering." Microsemi closed on Wednesday at $34.68.