Macom upgraded to Buy from Hold at Benchmark

Benchmark upgraded Macom (MTSI) to Buy from Hold with a $92 price target. After the company announced it has signed an agreement to acquire the assets of Wolfspeed’s (WOLF) GaN on SiC RF business for $125M, the firm’s “back of the envelope math” suggests 58c in annual EPS accretion potential if gross and operating margins move in-line with existing Macom’s business, the analyst tells investors. The firm is “further encouraged” by the datacenter AI opportunity, from which it sees Macom having “just begun to benefit,” the analyst added.