M/A-Com Technology Receives a New Rating from Top Analyst

By Jason Carr

Needham analyst Quinn Bolton reiterated a Buy rating on M/A-Com Technology (NASDAQ: MTSI) today and set a price target of $49. The company’s shares closed last Friday at $36.50.

Bolton commented:

“In conjunction with the optical networking industry report entitled, “Optical Super Cycle: Halloween Scare Creates Opportunity for Treats” published this morning, we reiterate our Buy rating on MACOM and are buyers into earnings on Tuesday (11/15). We believe the multiple drivers of the optical super cycle remain intact. Specifically, we believe demand from Chinese service providers, hyperscale data center operators and metro build-outs in NA remains robust. Additionally, we already model MACOM’s PON revenue to decline Q/Q in September and December to reflect a near-term slowdown in the PON segment. Accordingly, we see the pullback in optical related names following mixed data points from Corning, Adva and Infinera as a buying opportunity.”

According to TipRanks.com, Bolton is a top 100 analyst with an average return of 16.8% and a 67.1% success rate. Bolton covers the Technology sector, focusing on stocks such as Sequans Communications S A, Integrated Device Tech, and Ikanos Communications.

M/A-Com Technology has an analyst consensus of Moderate Buy, with a price target consensus of $49.

Based on M/A-Com Technology’s latest earnings report from June 30, the company posted quarterly revenue of $142.3M and quarterly net profit of $22.55M. In comparison, last year the company earned revenue of $50.2M and had a net profit of $54.41M.

Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Alex Behfar, a the SVP & GM, Photonic Solutions of MTSI sold 6,777 shares for a total of $267,217.

MACOM Technology Solutions Holdings, Inc. engages in the provision of semiconductor solutions that enable internet applications, cloud connected apps economy, and modern, networked battlefield across the radio frequency (RF), microwave, millimeterwave, and photonic spectrum. Its products include RF pwer products, optoelectronics, photonic solutions, optical sub-assemblies, amplifiers, diodes, crosspoints and signal conditioners. The company was founded on March 25, 2009 and is headquartered in Lowell, MA.