Skip to main content

Market Overview

Failed Acquisition Could Create Buying Opportunity For Xcerra, DA Davidson Says

Failed Acquisition Could Create Buying Opportunity For Xcerra, DA Davidson Says

A failed acquisition of Xcerra Corporation (NASDAQ: XCRA) by China-based Unic Capital Management could create a buying opportunity for Xcerra as the company’s fundamentals have outpaced its share price, according to analysts at D.A. Davidson

The Analyst

Thomas Diffely of D.A. Davidson upgraded Xcerra from Neutral to Buy, raising the price target from $10.25 to $15.

The Thesis

A year after Unic Capital Management announced its intention to acquire semiconductor company Xcerra, the agreement was terminated after it was unable to get CFIUS approval.

Since the bid, however, shares have traded around the acquisition price while revenues have grown 30 percent, Diffely said in a Monday note. (See the analyst’s track record here)

“Business momentum is very robust”, the analyst said, citing strength across end markets – including automotive and flat panel display – new product momentum and continued growth in Chinese markets as key revenue drivers.

Despite the failed merger, Xcerra and Unic still plan to explore partnership opportunities to facilitate Xcerra’s expansion efforts into China’s high-growth market, according to Diffely.

Price Action

At time of publication, shares of Xcerra traded up 2.9 percent at $10.

Related Links:

8 Semiconductor Stocks That Could Be Acquisition Targets

Can Semiconductors Get Their Groove Back In 2018? Here's Oppenheimer's Playbook

Latest Ratings for XCRA

Oct 2018Stifel NicolausSuspendsHoldHold
May 2018Stifel NicolausDowngradesBuyHold
May 2018NeedhamDowngradesBuyHold

View More Analyst Ratings for XCRA
View the Latest Analyst Ratings


Related Articles (XCRA)

View Comments and Join the Discussion!

Posted-In: D.A. Davidson Thomas Diffely UnicUpgrades Analyst Ratings Best of Benzinga

Latest Ratings

IMRASVB LeerinkMaintains42.0
PASGChardan CapitalMaintains45.0
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