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Investing.com - Jefferies has upgraded Maxscend Microelectronics Co (300782:CH) stock rating from Hold to Buy, while raising its price target to RMB96.00 from RMB80.00.
The upgrade comes as Jefferies’ channel checks indicate Samsung is increasing its use of Chinese radio frequency (RF) suppliers, primarily for mid-range models, as competitor Qorvo closes down manufacturing facilities.
Maxscend has been actively diversifying its supply chain beyond mainland China to mitigate potential geopolitical risks, according to Jefferies.
The research firm notes that Maxscend’s management considers Q2 gross margin as the low point and expects margins to recover going forward.
This margin improvement is anticipated to be driven by contributions from new products including PAMiD, WiFi, and SoC offerings, alongside increased utilization rates at the company’s production lines.
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