Piper Jaffray Raises Price target on Universal Electronics (UEIC) Following Mixed Earnings and Guidance

Piper Jaffray reiterated an Overweight rating on Universal Electronics (NASDAQ: UEIC), and raised the price target to $69.00 (from $68.00), following the company's 4Q earnings report. UEI reported Q4 EPS of $0.91 on revenue of $162.1M vs. consensus of $0.85 on $164.2M. The Q1'16 outlook calls for PF EPS of $0.46-$0.54, below consensus of $0.60, while revenue guidance of $153-161M is well above the Street's $144.1M.

Analyst Michael Olson commented, "UEI reported a mixed Q4, with EPS of $0.91 on revenue of $162.1M vs. the Street at $0.85 on $164.2M. Q1 guidance of $0.50 (at the mid-point) is below the Street at $0.60, but revenue guidance of $157M (midpoint) was well ahead of consensus at $144M. Mgmt reaffirmed avg. multi-year annual EPS growth of 10%-20% and rev growth of 5%-10%. While recent results have been mixed due to a transition in the industry to next gen remotes, we believe LT growth will be driven by the increasing volumes of these higher ASP remotes. The company specifically indicated that there are a number of new customers transitioning to advanced remote control platforms in 2016. We have a positive stance on UEI's LT growth story, primarily based on expectations for service providers to increasingly adopt next gen remotes. Maintain Overweight rating; PT to $69."

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Shares of Universal Electronics closed at $52.46 yesterday.

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