Will This Upgrade Help TriQuint Semiconductor (TQNT) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- TriQuint Semiconductor (TQNT) was upgraded to "buy" from "neutral" by DA Davidson Thursday.

TriQuint gained 0.6% to $14.27 in morning trading.

The firm set a price target of $18 for the chipmaker. DA Davidson analysts expect merger synergies from the RF Micro Devices (RFMD) deal.

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Separately, TheStreet Ratings team rates TRIQUINT SEMICONDUCTOR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRIQUINT SEMICONDUCTOR INC (TQNT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

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

  • Powered by its strong earnings growth of 29.41% and other important driving factors, this stock has surged by 193.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Semiconductors & Semiconductor Equipment industry average, but is less than that of the S&P 500. The net income increased by 31.8% when compared to the same quarter one year prior, rising from -$27.95 million to -$19.07 million.
  • TRIQUINT SEMICONDUCTOR INC has improved earnings per share by 29.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIQUINT SEMICONDUCTOR INC reported poor results of -$0.23 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus -$0.23).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TRIQUINT SEMICONDUCTOR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TRIQUINT SEMICONDUCTOR INC is currently lower than what is desirable, coming in at 33.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.73% is significantly below that of the industry average.
  • You can view the full analysis from the report here: TQNT Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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