The Aliso Viejo, CA-based semiconductor company is advantaged by its diversified revenue base and recent acquisition of PMC-Sierra, which will cut costs, the firm said.
Even if the semiconductor industry struggles, Microsemi should still see earnings growth in fiscal 2017, the firm added. The company is benefited by its businesses in the aerospace and defense and security markets, according to RBC.
"The company remains as one of the rare semiconductor companies with a current valuation level near its 2008-2009 trough while maintaining a notable EPS growth story," RBC said.
Microsemi stock closed up by 1.40% at $33.24 on Wednesday.
Separately, 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 rates this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: MSCC