UPDATE: Deutsche Bank Initiates Coverage on Montage Technology Group on Strong Track Record

In a report published Monday, Deutsche Bank analyst Ross Seymore initiated coverage on

with a Buy rating and $18.00 price target. In the report, Deutsche Bank noted, “MONT is a rapidly growing analog/mixed signal company targeting the expanding emerging mkt STB and next-gen memory buffer markets. MONT is unique among Asian fabless peers in that the co has sustained strong rev growth while maintaining GM near 60% (vs. most peers in the 40% range). Despite its strong track record the shares trade at a significant discount to US-based peers due to investor trepidation regarding the location and visibility into the local China STB SoC market. We expect this discount will narrow in 2014 as investors become more comfortable with MONT's execution and its end-markets. Consequently, we initiate coverage with Buy rating and $18 P/T.” Montage Technology Group Ltd. closed on Friday at $14.61.