David Williams, an analyst from Benchmark Co., reiterated the Buy rating on Maxlinear (MXL – Research Report). The associated price target is $23.00.
David Williams’ Buy rating for Maxlinear’s stock is influenced by a number of factors. Despite a quarter and an outlook that left much to be desired, Williams sees potential in Maxlinear’s future. The disappointing performance of the company, particularly in comparison to its competitors, was unexpected. However, Williams believes that the current share price presents a lucrative entry point for long-term investors. He anticipates the company to regain momentum with its design wins and predicts a resumption of growth in the forthcoming years.
Williams also acknowledges the concerns surrounding the SIMO liability, but remains convinced that the eventual outcome will not be as detrimental as currently expected. He sees potential upside opportunities on the horizon, especially as demand is nearing a nadir and pessimism is at its peak. Moreover, the ongoing cost-cutting measures through headcount reductions and site consolidations are expected to contribute to savings in the near future. Finally, Williams notes that despite the excess inventory, some improvement is being felt, and revenues are expected to double next year. Based on these factors, he maintains a Buy rating for Maxlinear.
In another report released on October 24, Susquehanna also maintained a Buy rating on the stock with a $30.00 price target.
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Maxlinear (MXL) Company Description:
MaxLinear, Inc. engages in the provision of radio frequency, high-performance analog and mixed-signal communications systems-on-chip solutions for the connected home, wired and wireless infrastructure, and industrial and multi-market applications. Its products include cable broadband modems and gateways, wireline connectivity devices, radio frequency transceivers, fiber-optic modules, video set-top boxes and gateways, hybrid analog and digital televisions, direct broadcast satellite outdoor and indoor units, and power management and interface products. The company was founded by Kimihiko Imura, Curtis C. Ling and Kishore V. Seendripu on September 25, 2003 and is headquartered in Carlsbad, CA.
Read More on MXL:
- MaxLinear price target lowered to $30 from $40 at Susquehanna
- Maxlinear (MXL) Q3 Earnings Cheat Sheet
- MaxLinear downgraded to Hold from Buy at Deutsche Bank
- Silicon Motion files notice of arbitration claim against MaxLinear
- Silicon Motion provides additional details on MaxLinear’s termination of merger
