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BofA Upgrades Integrated Device Technology To Buy, Has Higher Confidence In Growth

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BofA Upgrades Integrated Device Technology To Buy, Has Higher Confidence In Growth
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Bank of America’s Vivek Arya upgraded Integrated Device Technology Inc. (NASDAQ: IDTI) from Neutral to Buy and assigned a $26 price target. Confidence has grown in the company with 15-20 percent growth in data centers "plus upside with Intel’s 3D Xpoint," according to Arya.

Intel Corporation (NASDAQ: INTC)'s 3D Xpoint is the cutting-edge memory storage device Intel announced July 2015.

IDTI was mentioned earlier in the year in the same conversation with Apple Inc. (NASDAQ: AAPL) when the tech giant mentioned wireless charging technology was in the works. Now with "Apple wireless charging (WC) design win out of the stock," new growth is expected through "wins at large China customers in 2017."

IDTI leads the sector in wireless charging capabilities. Arya mentions "CY16/17 Street expectations for sales of $769mn/$803mn look more manageable, and spending is at a trough." In addition, he said "Skylake could accelerate Server upgrades in CY17" and drive growth above consensus. The company boasts "best-in-class 25% FCF margins, plus a 3% margin expansion," Arya explains. The company's "product diversity, FCF generation, and execution rivals larger-cap peers even though IDT is only a $2.8 billion SMidcap company."

The analyst is confident "IDT is a very well managed analog/mixed-signal business in a rapidly consolidating sector."

On the heels of Bank of America's upgrade, shares were trading up 5 percent at $21.50.

Latest Ratings for IDTI

DateFirmActionFromTo
Dec 2016Loop CapitalInitiates Coverage OnBuy
Sep 2016Roth CapitalInitiates Coverage onBuy
Aug 2016JP MorganInitiates Coverage onOverweight

View More Analyst Ratings for IDTI
View the Latest Analyst Ratings

Posted-In: Bank of America Vivek AryaAnalyst Color Upgrades Price Target Analyst Ratings

 

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