UPDATE: Topeka Capital Markets Reiterates Buy Rating, Raises PT on Spansion on High Margin Accretion Potential in Acquisition

In a report published Tuesday, Topeka Capital Markets analyst Suji De Silva reiterated a Buy rating on

, and raised the price target from $22.00 to $32.00. In the report, Topeka Capital Markets noted, “Reflecting the planned merger of CODE with Cypress (CY-$10.43:Buy), we are raising our price from $22 to $32, and maintain our Buy rating. We expect the acquisition to close in 1H15 with limited anti-trust or regulatory issues given the lack of direct product market overlap. Among potential semiconductor bidders, we believe CY is the best positioned memory and embedded controller semiconductor vendor to drive cost synergies from the CODE business.” Spansion closed on Monday at $22.85.