UPDATE: Stifel Upgrades Inphi Corporation to Buy, Names $21 PT on Window of Opportunity

In a report published Thursday, Stifel analyst Tore Svanberg upgraded the rating on

from Hold to Buy, and named a $21.00 price target. In the report, Stifel noted, “We are upgrading shares of IPHI to Buy from Hold and setting a $21 target price. Although shares are up roughly 19% YTD (vs. the S&P 500 up 0.7%) and trading just below its 52-week high of $16.09, we believe there remains a window of opportunity for investors to build positions ahead of favorable tailwinds and long-term trends in each of its core businesses, with growth likely outpacing its small-cap peers by 3x for the next two years. Our new target price of $21 represents an EV/sales multiple of 3.4x, which just below its peer group multiple of 3.5x, but at the current price, shares are trading at a 38% discount. Revenue growth has recently accelerated and is likely sustainable for the next eight quarters, making Inphi one of the fastest growing companies in our coverage universe. Based on favorable trends and recent checks, we are also raising our estimates above Street consensus. While revenue growth will accelerate, we are not necessarily expecting significant leverage in the model as the company will likely continue to invest in R&D to effectively compete against larger companies with more resources.” Inphi Corporation closed on Wednesday at $15.57.