Brean Capital Raises Price Targets On RF Micro Devices And TriQuint Semiconductor

Brean Capital raised its price targets on RF Micro Devices, Inc. RFMD and TriQuint Semiconductor TQNT Monday and maintained Buy ratings on both companies.

The price target on RF Micro Devices was raised from $16.00 to $20.50 and the TriQuint price target was raised from $25.00 to $33.50.

Analyst Mike Burton raised his “estimates on both RFMD & TQNT to account for the strength in the Apple supply chain and increasing our target multiple which we believe is warranted now that the MOFCOM decision has past, and we have become increasingly confident in both companies’ ability to meet or beat their near-term estimates.”

“RFMD did not provide any update to its guidance, but our own conversations with other supply chain management and investor reps lead us to believe that, for those that are exposed to Apple, this quarter is playing out as well or better than was expected. We now believe that Apple will ship 70M iPhones in Q4 which we think is limited by supply constraints, and will expect a decline to 55M in Q1 (which is up 26 percent Y/Y),” according to Burton

The analyst note added, “The final regulatory obstacle in front of the Qorvo merger was cleared on 11/24 when China’s MOFCOM granted approval. The merger will close on 12/31 and the new entity, Qorvo, will start trading under ticker QRVO on January 2, 2015. This means the companies can start to realize revenue synergies and cost savings that they have been working on since March, including moving TQNT’s assembly and test to RFMD.”

Related Link:  D.A. Davisdon Downgrades RF Micro Devices.

RF Micro Devices, Inc. closed at $16.51, up 3.45 percent.

TriQuint Semiconductor closed at $27.65, up 3.60 percent.

Posted In: ApplePrice TargetAnalyst Ratings