Among the 12 analysts covering Cypress Semiconductor (CY), one recommended a “buy,” while 11 recommended a “hold.” None of the analysts recommended a “sell” on the stock. Analysts have set a target price of $23.79 for the stock, which implies a premium of 7.8% based on its closing price of $22.07 on June 3.
Cypress stock gained ~24% on June 3 after German chipmaker Infineon Technologies formed an agreement to purchase Cypress for $10.06 billion. The deal would help Infineon grow in fast-developing areas including Internet-of-Things, automotive, and industrials. The deal would make Infineon the world’s largest automotive semiconductor supplier. The company would be the world’s eighth-largest chip manufacturer. Infineon shares lost 7.1% on June 3 after the news about the acquisition.
Since the acquisition deal was announced, many analysts have increased Cypress Semiconductor’s target price and slashed the ratings. On June 4, Suntrust Robinson, Barclays, and Mizuho increased the target price. Cowen and Company, Susquehanna, and Craig-Hallum increased the target price. Mizuho and Susquehanna slashed their ratings from “buy” and “positive,” respectively, to “neutral.” Craig-Hallum cut its rating to “hold.”
The higher target prices are as follows:
- Suntrust Robinson raised the target price to $23.85 from $17.
- Barclays increased the target price to $23 from $15.
- Mizuho hiked the target price to $23.85 from $18.
- Cowen and Company raised the target price to $23.85 from $18.
- Susquehanna increased the target price to $24 from $20.
- Craig-Hallum raised the target price to $23.85.