Benchmark Co. Reiterates a Buy Rating on QuickLogic

By Jason Carr

In a report released today, Gary Mobley from Benchmark Co. reiterated a Buy rating on QuickLogic (NASDAQ: QUIK), with a price target of $3. The company’s shares opened today at $0.80, close to its 52-week low of $0.75.

Mobley noted:

“We are reducing our 4Q16 non-GAAP EPS estimate to $(0.06) from $(0.05). We are modeling 38% Q/Q revenue growth for 1Q16 as QUIK begins to ship to its tier-one smartphone/wearable OEM. QUIK’s growth is contingent on customer adoption and success of QUIK’s sensor hubs, which are transformative as the volume opportunity is quite significant, and the margin potential is higher than the corporate average. The comp. environment is such that the hub can be included in the apps processor, designed and marketed as a discrete hub or an MCU in a multichip package including sensors. We believe QUIK has garnered several wins for the S2 in wearables (at the expense of discrete ASSPs with Cortex-M MCU). The EOS should compete successfully against ARM big.LITTLE smartphone apps processors. The company differentiates from STM, NXPI, ATML/MCHP, etc. in that the EOS contains re-programmable logic that allows for different sensing alg. to run at the same time. Furthermore, the EOS can utilize QUIK’s alg. or be mixed and matched with third-party or even OEMs’ proprietary algorithms. QUIK markets its EOS sensor hubs on the premise that it consumes less power than an ARM-based integrated apps processor, competing discrete solutions or MCUs integrated with sensors.”

According to TipRanks.com, Mobley is a 1-star analyst with an average return of -5.3% and a 38.8% success rate. Mobley covers the Technology sector, focusing on stocks such as Adesto Technologies Corp, Vitesse Semicond, and Cadence Design.

Currently, the analyst consensus on QuickLogic is Moderate Buy and the average price target is $1.50, representing an 87.5% upside.

In a report issued on October 20, Roth Capital also reiterated a Buy rating on the stock with a $1.50 price target.

Based on QuickLogic’s latest earnings report from June 30, the company posted quarterly revenue of $2.72M and quarterly net profit of -$5.57M. In comparison, last year the company earned revenue of $4.19M and had a net profit of -$5.09M.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of QUIK in relation to earlier this year. Most recently, in May 2015, Andrew Pease, the President & CEO of QUIK bought 31,446 shares for a total of $50,943.

QuickLogic Corp. operates as a semiconductor company that designs, markets, and supports primarily Customer Specific Standard Products and secondarily, Field Programmable Gate Arrays, sensor software algorithms, software drivers, associated design software and programming hardware. It develops and markets low power customizable semiconductor and software algorithm solutions that enable customers to differentiate their products by adding new features, extending battery life, becoming more contextually aware and improving the visual experience with their mobile, consumer and enterprise products. QuickLogic was founded by John M. Birkner, Andrew K. Chan and Hua-Thye Chua in 1988 and is headquartered in Sunnyvale, CA.