UPDATE: Topeka Capital Markets Initiates Coverage on RDA Microelectronics with Buy Rating, $14 PT Following Steady Diversification

In a report published Thursday, Topeka Capital Markets analyst Suji De Silva initiated coverage on RDA Microelectronics RDA with a Buy rating and $14.00 price target. In the report, Suji De Silva noted, “We are initiating coverage of RDA Microelectronics with a Buy rating and a $14.00 price target. With steady diversification from its roots as an RF PA vendor for the low-end China handset market, we believe the Company has achieved revenue CAGR of 96% over the last 5 years, with a run-rate today approaching $400m, coupled with very respectable 30+% gross margins. We expect RDA to steadily improve its handset semiconductor position, and benefit from growth in this market.” RDA Microelectronics closed on Wednesday at $10.88.