February 20, 2013 9:55 AM EST
"Needham & Company boosted its price target on ANADIGICS (NASDAQ: ANAD) from $2.50 to $3.25 following in-line Q4 results. The firm is expecting a strong WiFi ramp in 2013.
The analyst comments, "ANADIGICS reported in-line 4Q12 results and indicated that a strong ramp of its new WiFi FEICs would partially offset typical seasonality (down ~25% Q/Q) in its cellular business in 1Q13. Having already secured reference design positions at two leading WiFi chip suppliers and design wins at multiple tier-one OEMs, the company’s new WiFi FEICs may reach ~10% of sales in 1Q13 from a base of effectively zero in 4Q12. Accordingly, we remain optimistic on ANADIGICS as the expected ramp of WiFi FEICs should reduce the risks associated with the company’s cash burn and cash position. Reflecting our expectations for strong revenue growth over the next two years, we are raising our 12-month price target to $3.25, or an EV of 1.0X our 2014 revenue estimate, from $2.50."
The firm adjusted FY13 EPS from ($0.54) to ($0.55) and sees FY14 EPS of ($0.20).
Shares of ANADIGICS closed at $2.80 yesterday, with a 52 week range of $1.05-$3.22."