Skip to main content

Market Overview

5 Reasons B Riley Turned Bullish On II-VI


II-VI, Inc. (NASDAQ: IIVI), an electronic component manufacturing company, presented last week at the OFC Conference and management's takeaway in part helped turn B Riley bullish on the stock.

The Analyst

B Riley FBR's Dave Kang upgraded II-VI's stock from Neutral to Buy with a price target lifted from $40.50 to $55.

The Thesis

The case for being bullish on II-VI's stock is five-fold, Kang said in a note.

The biggest takeaway from the event is that demand for II-VI's industrial labels is strong and optical demand is improving. This also holds true in China as the country could deploy over six million 5G base stations which represents a $300 million opportunity for II-VI.

SiC technologies have been around for a few years, but SiC applications are only starting to emerge now, the analyst said. II-VI's management estimates the SiC substrate market would be worth around $300 million in 2022 and the company could eventually supply SiC chips, which would expand its total addressable market by "several fold."

The other bullish factors include:

  • II-VI is strategically positioned to benefit from the growing 3DS market;
  • The analyst's checks found II-VI is tracking above the fiscal third quarter consensus estimates; and
  • Incremental revenue growth will likely result in operating margin expansion from 11.9 percent in fiscal 2017 to 15.6 percent in fiscal 2019 and 18.5 percent the following year.

Price Action

Shares of II-VI were trading higher by nearly 5 percent late Tuesday morning.

Related Links:

Has The Optics Sector Become A Stock Picker's Market?

Optical Stocks In Focus Following Apple's Deal With Finisar


Related Articles (IIVI)

View Comments and Join the Discussion!

Posted-In: 4G 5G B Riley FBR Dave KangAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at