Apple Supplier Lifts Off On Sunny Forecast

Several analysts came in with price-target hikes

Deputy Editor
Jun 30, 2020 at 9:22 AM
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Semiconductor concern Xilinx, Inc. (NASDAQ:XLNX) last night lifted its fiscal first-quarter revenue forecast, citing easing restrictions on sales to Chinese companies. The announcement sparked no less than five price-target hikes, the highest being from Rosenblatt Securities to $120 from $150. At last check, XLNX is up 5.1% at $96.60. 

A broader look at analyst sentiment shows, coming into today, the Apple (AAPL) supplier's 12-month consensus price target sat at $100.38, which is a 9.2% premium to last night's close. There is plenty of room for upgrades among the brokerage bunch, too. Just four covering the stock call it a "buy" or better, compared to the 14 saying "hold" or worse. 

This caution isn't completely unfounded. XLNX is looking at a one-year deficit of roughly 22%, with pressure near the $97 mark, which also coincides with the stock's year-to-date breakeven, putting some added weight on the shares. On the other hand, Xilinx stock has distanced itself from its mid-March two-year low of $67.68 -- up 42.7% since then -- with solid support at its 40-day moving average directly below. 

The options pits also lean bearish, per XLNX's 10-day put/call volume ratio of 1.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 87% of readings from the past year, suggesting this appetite for long puts is unusual. 


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