Why MACOM Technology Is A 'Buy': Analyst Upgrades MTSI With $92 Price Target Post-Wolfspeed Acquisition
Portfolio Pulse from Lekha Gupta
Benchmark analyst David Williams upgraded MACOM Technology Solutions Holdings Inc. (MTSI) to Buy from Hold, with a price target of $92. The upgrade is based on MTSI's acquisition of radio frequency business from Wolfspeed Inc (WOLF) for $125 million. The analyst expects MTSI to garner an annualized EPS accretion of about $0.58 post-full integration. Further datacenter AI opportunities for MTSI are also anticipated.
August 28, 2023 | 6:13 pm
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POSITIVE IMPACT
MACOM Technology Solutions Holdings Inc. (MTSI) has been upgraded to Buy from Hold by Benchmark analyst David Williams, with a price target of $92. The upgrade is based on MTSI's acquisition of radio frequency business from Wolfspeed Inc.
The upgrade by the analyst is based on MTSI's acquisition of radio frequency business from Wolfspeed Inc. This acquisition is expected to increase MTSI's annualized EPS by about $0.58 post-full integration. Moreover, the analyst sees further datacenter AI opportunities for MTSI. These factors are likely to have a positive impact on MTSI's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Wolfspeed Inc (WOLF) has sold its radio frequency business to MACOM Technology Solutions Holdings Inc. (MTSI) for $125 million.
Wolfspeed Inc has sold its radio frequency business to MACOM Technology Solutions Holdings Inc. for $125 million. The impact of this sale on WOLF's stock price is uncertain in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50