Why Shares of MACOM Technology Solutions Tumbled Today
Shares of MACOM Technology Solutions (NASDAQ: MTSI) slumped on Monday after the semiconductor company received an analyst downgrade. This downgrade comes a few months after a disappointing third-quarter report, with MACOM coming up short of analyst expectations and predicting a slowdown in revenue and earnings growth for the fourth quarter. The stock was down about 13% at 11 a.m. EDT.
The downgrade came from an analyst at Stifel who previously maintained a buy rating on the stock. The analyst knocked down that rating to a hold, citing near-term weakness in China, issues with cash flow generation, and poor capital management related to acquisitions as reasons for the downgrade. A new price target of $43 per share represents a steep drop from the previous price target of $57 per share.
Image source: MACOM.
Source: Fool.com
M/a-Com Technology Sol. Stock
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