Citi Initiates MX At Buy, $21 PT

Citi is initiating MagnaChip Semiconductor MX with a Buy (1S) rating and a $21 target “offering 50% potential return.” “While risks warrant a discount, our Buy rating centers on: 1) MX currently trading at a ~65% discount to the analog group, 2) unique leverage to Korean OEMs LG and Samsung who can succeed in the display/consumer markets, 3) iPad exposure through LG Display, and 4) a fast ramping power business with ~70%+ yy growth in C11E,” Citi writes. MagnaChip Semiconductor closed Wednesday at $13.96.