Canaccord Downgrades InvenSense To Hold Noting Slower iPhone Growth

Canaccord's Matthew Ramsay downgraded InvenSense

from Buy to Hold while decreasing the price target from $10.00 to $6.22. The analyst rating change came in response to the company's "soft" Q4/F2016 results displaying "slowing iPhone unit growth and significant share loss at Samsung". Future loss was probable on multiple fronts the Canaccord analyst said as he feared "margin pressured OEMs could remain hesitant to pay up for InvenSense products in the medium term." Focus on Drones and VR is "Not Enough" Management's commitment to drones, VR, wearables, smart home and industrials "will not prove enough to compensate for slowing iPhone growth" and "share loss at Samsung" Ramsay noted. Due to these concerns, Cannacord cut 2017 estimates for sales from $422.5 to $324.1 and EPS from $0.51 to $0.13 for InvenSense.