In a report released today, Christopher Rolland from Susquehanna reiterated a Buy rating on Maxlinear (MXL – Research Report), with a price target of $25.00.
Christopher Rolland has given his Buy rating due to a combination of factors surrounding MaxLinear’s business outlook and strategic positioning. Despite a challenging period marked by an inventory overhang and softer demand, Rolland recognizes MaxLinear’s confidence in rebounding revenue growth quarter-over-quarter for the remainder of 2024. He notes management’s optimism about the significant potential in the Infrastructure segment, particularly with optical DSPs, and anticipates substantial growth in DSP revenue, exceeding initial expectations for 2024. Furthermore, the company’s traction with their 800G PAM4 DSP technology and partnerships in the industry, such as with Jabil and Optomind, support a strong revenue outlook in the medium term. Additionally, MaxLinear’s progress in the Broadband segment, especially with the ramp-up at a major North American service provider and the expected doubling of PON revenue, underscores the company’s growth prospects.
Moreover, Rolland is impressed by MaxLinear’s resilience in gross margins, aided by a favorable customer and product mix, and better than forecasted operational expenses. He acknowledges MaxLinear’s strategic investments in key areas like PAM4, mmWave, 5G, and Wi-Fi 7 technologies, which are poised for growth. Rolland is also encouraged by the company’s storage revenue potential, expecting it to double this year thanks to the Panther III storage accelerators. Despite the inventory challenges, which may have been exacerbated by industry dynamics during the pandemic, Rolland sees a clear path to growth and improvement in bookings, particularly for new products set to ramp up in the second half of the year. His reiteration of a Positive rating and a $25 price target reflects both the near-term challenges and the longer-term opportunities that MaxLinear is well-positioned to capture.
Rolland covers the Technology sector, focusing on stocks such as Intel, Nvidia, and Marvell. According to TipRanks, Rolland has an average return of 24.3% and a 66.46% success rate on recommended stocks.
In another report released today, Benchmark Co. also reiterated a Buy rating on the stock with a $28.00 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.
