NEW YORK (TheStreet) -- Shares of InvenSense (INVN) were advancing 8.3% to $8.28 in late-morning trading on Monday as Pacific Crest maintained its "buy" rating on the stock and said the San Jose, CA-based sensor system-on-chip producer is a favorite name in mobile semiconductor companies.
The firm said carrier phone inventories are lean as the summer season and ongoing promotions drive increased foot traffic. Heading into the second half of 2016, however, mobile supply-chain stock performance will be determined by Apple's (AAPL) iPhone 7 sales.
Despite its bullish position on InvenSense stock, Pacific Crest said there are a few risks associated with shares, including pricing pressures, market-share loss and a slowdown in demand.
Pacific Crest has a $9 price target on shares of InvenSense.
Additionally, the firm highlighted the Irvine, CA-based semiconductor company Broadcom (AVGO) as another leader in the semiconductor market.
About 1.85 million shares of InvenSense have been traded so far today, higher than the stock's 30-day daily average of 1.28 million shares.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate INVENSENSE INC as a Sell with a ratings score of D+. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: INVN