Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Rosenblatt Securities has reiterated its Buy rating and $40.00 price target on CEVA Inc. (NASDAQ:CEVA), following the company’s recent earnings report that exceeded estimates. The target represents an 87% upside from the current price of $21.33, though InvestingPro analysis suggests the stock is currently fairly valued.
The research firm highlighted CEVA’s four strategic neural processing unit (NPU) license agreements as particularly encouraging. These AI processor deals typically involve integrated circuits with higher average selling prices that could accelerate future royalty revenue. The company maintains impressive gross profit margins of 87.4% and has achieved 17% revenue growth over the last twelve months.
Rosenblatt noted these agreements demonstrate management’s strategy to increase intellectual property content per customer integrated circuit. The strategy focuses on combining sense, connect, and inference IP capabilities into AI solutions for edge devices.
Additional growth drivers identified by the firm include a rebound in handset unit shipments and early stages of new iPhone models incorporating CEVA’s intellectual property.
CEVA maintained its full-year guidance despite beating estimates in its most recent quarterly report, according to Rosenblatt’s analysis. Analysts expect the company to return to profitability this year, with projected earnings of $0.45 per share.
In other recent news, CEVA Inc. reported its second-quarter 2025 earnings, surpassing expectations for earnings per share (EPS). The company achieved an EPS of $0.07, which was higher than the anticipated $0.06, representing a 16.67% beat. However, CEVA’s revenue did not meet forecasts, coming in at $25.7 million compared to the expected $25.98 million, a shortfall of 1.08%. Despite the revenue miss, CEVA’s stock experienced a notable increase, reflecting investor confidence in the company’s strategic initiatives discussed during the earnings call. These developments highlight the mixed financial performance of CEVA, with a strong EPS overshadowing the revenue miss. Investors appear to be focusing on the positive aspects of the earnings report, as indicated by the stock’s upward movement. The company’s strategic outlook and execution seem to have bolstered investor sentiment, even as revenue fell slightly short.
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