'Sky Is Not Falling' For Cypress Semi; Analysts Recommend Opportunistic Buying
Cypress Semiconductor Corporation (NASDAQ: CY)'s recent selloff is "overdone," according to analysts from Pacific Crest Securities. Analysts John Vinh and Jun Wang see similar conditions for Cypress' peers, and their cash-flow analysis noted minimal risk to dividends. They rated Cypress Overweight with a $13 price target.
Vinh and Wang find the market's assessment of Cypress' estimates overly bearish, writing, "The market has priced in significant risk to estimates, which we do not believe is warranted."
In fact, Vinh and Wang see "favorable risk/reward" in front of earnings reports expected January 28.
Vinh and Wang forecast dividend risk for a variety of FY2016 outcomes, including revenue growth as low as 5 percent. Analyst consensus on expected revenue growth is 12 percent. Net EPS estimates for FY2016 came in at $0.64.
In terms of operations, Vinh and Wang expect a merger with Spansion Inc. (NYSE: CODE) will give Cypress "scale and profitability that it previously lacked."
Cypress shares sat at $8.18 early Friday afternoon.
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Latest Ratings for CODE
|Dec 2014||Sterne Agee||Downgrades||Buy||Neutral|
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