Wunderlich Securities Initiates Coverage On DSP Group On Break-Out Growth With Broadband VoIP & IoT

In a report published Tuesday, Wunderlich Securities analyst Matthew S. Robison initiated coverage on

with a Buy rating and $14.00 price target. In the report, Wunderlich Securities noted, “DSP Group, Inc. (DSPG) is uniquely positioned to provide connectivity and low power, always-on technology for the "Internet of things" (IoT). For years the company has battled in the consumer telephone market with several generations of innovation-led growth cycles. It has been a while since the last one, but now the company has four new growth engines. With initial benefits from growth initiatives, 2H14 marked the first six-month period the company has grown revenue since 2010. We model 2015 to be the first of a multi-year revenue growth cycle with new design wins in IoT augmenting office phone and residential gateway growth for acceleration in 2016 and 2017. We are initiating coverage with a Buy rating and a 12-month price target of $14.” DSP Group closed on Monday at $10.99.