Benchmark Maintains Buy, $36 Target on Ceva

Benchmark reiterates its Buy rating and $36 target price on Ceva CEVA as it expects fourth quarter revenue at high end of guidance range. Benchmark says, "Based on strong license and royalty trends, we believe CEVA should post 4Q11 revenue toward the upper end of its guidance range ($14.2 million to $16.2 million; vs. consensus of $14.8 million and Benchmark estimate of $14.8 million).
Based on strong CEVA-based baseband shipments during 3Q11, we believe it is likely CEVA's 4Q11 royalty revenue could exceed $9.3 million vs. our estimate of $9.1 million (royalties recognized one quarter in arrears)." CEVA closed at $28.16 per share on Thursday.