Needham & Company Upgrades MaxLinear (MXL) to Buy

Needham & Company analyst N. Quinn Bolton upgraded MaxLinear (NYSE: MXL) from Hold to Buy with a price target of $24.00.

The analyst commented, "We are upgrading shares of MXL to a Buy from a Hold rating and establishing a 12-month PT of $24, based on an EV of 5x our CY21 sales est. Based on multiple drivers and a positive inflection in MXL’s tone, we believe Connected Home will stabilize in 2020 after three years of Y/Y declines. We expect Infrast to grow in 2020 driven by share gains in microwave backhaul and the ramp of its 5G wireless transceiver and PAM4 DSP solutions. MXL shares have underperformed the SOX YTD (MXL up 12.7% vs SOX up 53.0%), leading us to believe that the stock will move higher if the company starts meeting Street estimates. Finally, we were encouraged to see that CFO Steve Litchfield bought ~45K shares in September for a total investment of $998.5K. As the saying goes, “There are hundreds of reasons to sell a stock, but there is only one reason to buy.”

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

Shares of MaxLinear closed at $19.84 yesterday.

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