Can This 5G Stock Deliver 25% Upside in These Uncertain Times?
Xilinx (NASDAQ: XLNX) stock was already in a spot of bother before the novel coronavirus pandemic wrecked the stock market, but one Wall Street firm actually has a positive view of the company's prospects. Xilinx stock was upgraded from neutral to buy by Goldman Sachs recently on the back of a potential turnaround in the communications business and data center strength.
That may seem surprising right now since Xilinx's primary catalyst tailed off coming into 2020 as 5G (fifth generation) wireless deployments lost pace. The chipmaker saw a double-digit drop in its top line in the last reported quarter, while its net income was down by nearly a third over the prior-year period. Xilinx also pointed out on the last earnings conference call that its wired and wireless business will decline for the full year.
Despite these headwinds, Goldman analyst Toshiya Hari sees an attractive opportunity in Xilinx. Hari has increased his price target to $100, indicating a 25%-plus upside from current levels.
Source Fool.com
