Loop Capital analyst Ananda Baruah downgraded MaxLinear (MXL) to Hold from Buy with a price target of $25, down from $40. The firm’s prior thesis on the stock as a compelling investment whether or not the Silicon Motion (SIMO) deal was closed was based on earnings power of standalone MaxLinear or the synergies / normalized earnings power of a merger, but with MaxLinear now moving away from the deal, intermediate-term earnings power has shifted, the analyst tells investors in a research note. The firm adds that if it were to believe that inventory normalization / pulling resumption were to occur within the next 6 months, it would remain constructive.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on MXL:
- MaxLinear downgraded to Hold from Buy at Loop Capital
- Silicon Motion intends to enforce MaxLinear merger agreement
- Silicon Motion price target lowered to $59 from $107 at B. Riley
- Benchmark sees ‘attractive entry point’ for MaxLinear with deal overhang cleared
- MaxLinear downgraded to Hold from Buy at Craig-Hallum
