Shares of RF Micro Devices were gaining 2.3% to $12.33 in pre-market trading.
The analyst firm raised its price target for the chipmaker to $16 from $12.50 along with the upgrade. Canaccord analysts T. Michael Walkley and Siddharth Sinha said RF Micro Devices' fiscal third quarter guidance is above consensus estimates due to "ramping sales into Apple's iPhone 6 products and growing TD-LTE smartphone sales in China."
The analysts continued, "Given RFMD's leading position with the Chinese smartphone OEMs, strong relationship with Samsung, and strong margin content in our expectations for very strong iPhone 6 smartphone sales, we believe RFMD has strong market share with all three major constituents of the smartphone market and is well positioned for continued solid growth trends with expanding margins."
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 some important positives, 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
You can view the full analysis from the report here: RFMD Ratings Report
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