Needham analyst Nick Doyle has maintained their bullish stance on PXLW stock, giving a Buy rating today.
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Nick Doyle’s rating is based on several strategic developments and opportunities within Pixelworks. The company is currently exploring strategic options for its Shanghai subsidiary, with multiple interested parties, indicating potential positive outcomes in the near future. Additionally, while the new projector SoC is facing some initial challenges, there is a belief that these can be overcome, which could lead to improved performance.
Furthermore, Pixelworks is making strides in its ASIC and IP opportunities, which, although not yet fully integrated into projections, have the potential to significantly enhance gross margins. Despite some short-term headwinds, such as packaging yield issues and aggressive pricing in the mobile sector, the long-term prospects appear promising, justifying the Buy rating.
Doyle covers the Technology sector, focusing on stocks such as MagnaChip, Cerence, and Pixelworks. According to TipRanks, Doyle has an average return of -7.2% and a 50.00% success rate on recommended stocks.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $1.00 price target.