GCT Semiconductor initiated with a Buy at B. Riley

B. Riley initiated coverage of GCT Semiconductor with a Buy rating and $8 price target, which represents 190% potential upside. The analyst believes GCT offers “vibrant” sales growth and margin expansion, plus the potential for a four- to six-quarter path to profitability with ensuing earnings expansion. GCT is well established with “decades of wireless chip and ecosystem know-how, a valuable patent trove, and a long list of global hardware and carrier ecosystem partners,” the analyst tells investors in a research note. The firm sees initial 5G shipments, new customer wins, and profitability progress as potential stock catalysts.