NEW YORK (TheStreet) -- Shares of RF Micro Devices (RFMD) are up 3.77% to $15.58 after Canaccord Genuity raised the company's price target to $20 from $18 today and reiterated its "buy" rating.

"Based on our analysis of global LTE network deployments and the improving LTE subscriber growth trends, we forecast a 20% handset RFIC TAM CAGR from 2014-2016," analysts said, regarding the potential market for the North Carolina-based radio frequency solutions company.

"We believe the merger between TriQuintSemiconductor (TQNT) and RFMD [to be named Qorvo] can leverage significant cost synergies through consolidating fabrication facilities, optimizing R&D expenditures, and eliminating duplicate costs," analysts added.

Shares of TriQuint are up 4.27% to $26.10.

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Separately, TheStreet Ratings team rates RF MICRO DEVICES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate RF MICRO DEVICES INC (RFMD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, 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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • RF MICRO DEVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RF MICRO DEVICES INC turned its bottom line around by earning $0.05 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $0.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 974.5% when compared to the same quarter one year prior, rising from $5.89 million to $63.31 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 16.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 172.89% to $58.70 million when compared to the same quarter last year. In addition, RF MICRO DEVICES INC has also vastly surpassed the industry average cash flow growth rate of 11.46%.
  • The gross profit margin for RF MICRO DEVICES INC is rather high; currently it is at 51.48%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.45% trails the industry average.
  • You can view the full analysis from the report here: RFMD Ratings Report

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