Needham & Company Cuts Price Target on Cypress Semiconductor (CY) to $17 Ahead of 3Q15 Earnings Release

Needham & Company maintained a Strong Buy rating on Cypress Semi (NASDAQ: CY), and cut the price target to $17.00 (from $20.00), ahead of the company's 3Q15 earnings call. After issuing roughly in-line 3Q15 guidance in late July, analyst Rajvindra Gill believes that Cypress started seeing signs of weakness early in the quarter and subsequently lowered its guidance in early August.

Gill commented, "We are lowering our estimates for Cypress heading into the 3Q15 earnings call (10/22 at 11:30AM ET). Our checks indicate that distributors and customers are exhibiting cautious ordering patterns due to increased uncertainty in China, and this fear could be spreading to European and North American customers as well. Long term, we continue to see significant earnings power in CY's model given the material synergies related to the Spansion merger, even on limited top-line growth. We are also lowering our price target to $17 to reflect our lower growth outlook, but we maintain that current levels reflect an attractive entry point for investors with the stock trading at just 7.8x our lowered FY17 EPS estimates and favorable risk/ reward. Stock also exhibits a dividend yield of 4.7%."

For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.

Shares of Cypress Semi closed at $9.34 yesterday.

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