InvenSense climbs as analyst raises price target
NEW YORK (AP) — Shares of InvenSense jumped Tuesday after an analyst said he is taking a more optimistic view of the technology parts supplier's business prospects.
Analyst Tristan Gerra of Robert W. Baird & Co., who rates InvenSense shares "Outperform," raised his price target to $23 per share from $20 on Tuesday.
InvenSense Inc. makes parts that are used for motion tracking devices in consumer electronics. Its stock rose $2.11, or 11 percent, to close at $21.69. The stock peaked at an annual high of $22.09 earlier Tuesday.
Gerra said the company's sales projection for this year could be conservative. He thinks it doesn't include some new customers, and InvenSense says its guidance doesn't include potential growth in some areas. And InvenSense should benefit as smartphone sales in China rise, he wrote in a client note.
Gerra also said that a patent settlement announced Monday with STMicroelectronics could eliminate up to $4 million in quarterly litigation costs for InvenSense. The company said it agreed with that estimate.