Stifel Starts CEVA Inc. (CEVA) at Buy

Stifel analyst Ruben Roy initiates coverage on CEVA Inc. (NASDAQ: CEVA) with a Buy rating and a price target of $30.00.

The analyst comments: "We are initiating coverage of Ceva, Inc. (CEVA) with a Buy rating and $30 target price. Our target price is based on 4.5x EV/S on our 2027 estimate. We believe CEVA is poised to leverage its category leadership in wireless connectivity IP to power-efficient on-device sensing and inference applications. We believe that CEVA’s low power NPU and DSP IP portfolios are uniquely positioned to participate in significant TAM growth as ongoing AI infrastructure investments drive intelligence towards the network edge. While we are cognizant of potential near-term headwinds including mobile handset demand trends, lack of visibility into Apple’s in-house modem efforts, and ongoing challenges in the automotive industry, we view CEVA’s recent NPU deal with Microchip Technology, Inc. (MCHP, colleague Tore Svanberg coverage) as strategic validation on the company’s longer-term strategy. We believe that CEVA offers longer-term minded investors diversified exposure to the nascent edge-AI TAM at a reasonable valuation."

For an analyst ratings summary and ratings history on CEVA Inc. click here. For more ratings news on CEVA Inc. click here.

Shares of CEVA Inc. closed at $22.95 yesterday.

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