Goldman Sachs maintained a Buy rating on InvenSense (NYSE: INVN) with a modified price target of $20.00 (from $22.00). Q4 results triggered a large decline in the stock.
Analyst Mark Delaney said, "We maintain Buy as we believe the fact that InvenSense built inventory for multiple large ramps, raised opex to support new customer qualifications and guided FY15 sales above the Street indicates meaningful growth potential. However, we think it will be key to execute on these opportunities in order to leverage increased investments and generate EPS growth. As an example, we estimate that winning 15% share of iPhone & iPad units in 2HCY14 could add $0.10-0.25 to EPS (annualized) and achieving 40% share in CY15 could add $0.40-0.50 to EPS (Exhibits 1-2), and this will likely be an upside to EPS. We note InvenSense does not typically guide full year sales, but we believe it has a strong track record of hitting quarterly sales guidance (Exhibit 3)."