Institutions have increased their shares in this semiconductor company by 0.39%; the company trimmed losses by a penny—better than analysts expected; and this analyst is calling for an almost-double in the stock price.
Applied Micro Circuits Corporation (AMCC)
from Canaccord Genuity Research
In a report on Applied Micro Circuits Corporation (AMCC), Canaccord Genuity analyst Matthew Ramsay said “Last Friday, APM announced the resignation of CFO Doug Ahrens effective August 21 in what we believe is an amicable departure for both Mr. Ahrens and the company’s management and Board.
Overall, our view on APM’s stabilized base business and gradually improving fundamentals is unchanged as we maintain our belief APM is well-positioned for long-term growth and significant operating leverage as the first vendor with 64-bit ARM chips designed specifically for mainstream server segments. Further, increased design win visibility for new HeliX embedded ARM products and recent 240G Connectivity wins for X-Weave products provide a path for base business recovery in C'16 and a resumption of growth in C'17.
Given the significant decline in PowerPC legacy business over the last year, we still expect modest losses for the next few quarters despite aggressive operating expense management; however, our long-term bullish thesis has gained tangible proof points in the last couple quarters.
Further, given APM’s lowered cost structure, solid balance sheet, and emerging product roadmap, we believe the company is a valuable asset in a consolidating industry. We reiterate our BUY rating and $10 price target.”
Matthew D. Ramsay and Steven Lee, Canaccord Genuity Research, www.canaccordgenuity.com, 617-371-3711, August 16, 2015