Wedbush has reiterated its "Outperform" recommendation for the chipset maker.
Wedbush has reiterated its "Outperform" recommendation for chipset maker Ceva Inc. (Nasdaq:CEVA); LSE:CVA) and raised its target price for the share to $14 from $12.50.
Wedbush said that demand for mobile phone components is stronger than expected, which will result in better royalty growth for Ceva through mid-2010. It added that Ceva's design win pipeline gives exceptional long term visibility, and that ultra-low-cost GSM/EDGE and low-end smartphone applications will continue to drive volume.
Wedbush cites market gains by Ceva licensees Infineon AG (NYSE; XETRA: IFN), Broadcom Corporation (Nasdaq: BRCM), and ST-Ericsson which use Ceva-based chipsets. Ceva is also expanding into ODM and white box applications via licensees Spreadtrum Communications (Shanghai) Co. Ltd. (Nasdaq: SPRD), Via Telecom Inc. and MediaTek Inc. (Taipei: 2454).
Ceva's share was unchanged on the London Stock Exchange at ₤6.50 today, and rose 1% in early trading on Nasdaq to $11.48.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009