Susquehanna Upgrades Intersil (ISIL) to Positive

Susquehanna upgraded Intersil (NASDAQ: ISIL) from Neutral to Positive with a price target of $18.00 (from $14.00), saying they see new products in the company's consumer segment beginning to positively impact earnings.

Analyst Chris Caso commented, "We’re upgrading ISIL from a Neutral to a Positive rating. We’ve been Neutral on the stock for a long time, as we moved through the company’s management transition, and we’ve been waiting for the impact of the new management’s product development efforts to show results. We think we’re now very close to having new products in ISIL’s consumer segment begin to positively impact earnings. In addition, the combination of TXN’s exit of PC power management as well as rising content on INTC’s Skylake platform is now likely to make ISIL’s PC business more attractive. If management does what they say they will do – growing their computing and consumer business by 10% Y/Y in 2015 – this would result in strong sequential growth numbers, especially in 2H15. This would provide a clear path to $1 in annualized EPS, which we think would support an $18 stock. If management’s goals prove to be too aggressive, we think the consolation prize is that these new products would make ISIL much more attractive as an acquisition target, which should at the very least create a floor for the stock."

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

Shares of Intersil closed at $14.41 yesterday.

You May Also Be Interested In