"The worst has passed" for the licensor of silicon intellectual property (SIP) primarily for the handsets, mobile broadband, portable and consumer electronics markets, analysts said.
Reviewing the smartphone market, Oppenheimer argues two things relevant to CEVA. First, analysts cite primary growth area in low-to-midend handsets in developing markets as a boon to the company.
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Second, due to hyper-competitive pressures emerging in 2015, analysts believe original equipment manufacturers will look for ways to drive down costs without compromising quality.
"To this end, CEVA sits primed to take advantage of both. First, CEVA's primary customers Spreadtrum Communications Inc. (SPRD) and Leadcore Inc. serve the fastest growing markets. Second, we see Samsung Electronics Co. (SSNLF) and MediaTek Inc. as opportunities as they work to streamline their product offerings, ultimately using CEVA's technology more than in the past," analysts said.
Separately, TheStreet Ratings team rates CEVA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CEVA INC (CEVA) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year."