Evercore Group Feels More Confident In Applied Micro Circuits

In a report published Wednesday, Evercore Group analyst Michael Lucarelli reiterated an Overweight rating and $15.00 price target on Applied Micro Circuits (NASDAQ: AMCC).In the report, Evercore Group noted, “We are more confident in X-Gene's prospects after Cavium's ThunderX announcement reinforced a key pillar to our thesis: X-Gene's time to market advantage."ThunderX will likely not be in servers until 2H15 at which point X-Gene 1 will have been shipping ~1.5 years and XGene 2 for ~6 months. This comes on the heels of AMD confirming the necessity of a custom core (another pillar) when they announced in early May that they will bring a custom SoC (K12) to market in 2016. As such, the next 12-18 months will be critical for X-Gene to garner design wins and make significant inroads into the ARM server market."With purchase orders in hand across a spectrum of markets (OEM, cloud, HPC, and networking) and meaningful revenues just a few quarters away, we think Applied Micro (APM) is on its way. Reiterate OW and $15PT.”Applied Micro Circuits closed on Tuesday at $8.98.