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On Tuesday, Stifel analysts maintained a Buy rating on MaxLinear (NASDAQ:MXL) shares, with a steady price target of $16.00. Currently trading at $10.30, the stock has experienced significant volatility, having fallen nearly 50% year-to-date according to InvestingPro data. While analysts’ targets range from $11.00 to $27.50, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels. The firm anticipates that MaxLinear’s first-quarter results for 2025 will align with their revenue estimate of $95.0 million, marking a 3.1% increase quarter over quarter. This projection is supported by the continued momentum in Network Timing AI (PAM4 DSP) and stability in sectors other than Infrastructure. While the company’s revenue declined 48% in the last twelve months, analysts expect a 24% growth in FY2025. Get deeper insights into MaxLinear’s growth prospects with InvestingPro’s comprehensive research report, one of 1,400+ available for top US stocks.
However, Stifel forecasts a more conservative outlook for the second quarter of 2025 due to the ongoing macroeconomic and trade uncertainties. Despite this, the firm suggests that MaxLinear’s Infrastructure segment may still exhibit relative strength, even if capital expenditure ramp-ups by AI and hyperscalers are moderated in the upcoming quarters. MaxLinear derives approximately 54% of its revenue from consumer-focused markets like Broadband and Connectivity, with an additional 17% from the Industrial & Multi-Market (IMM) segment, which is more susceptible to macroeconomic fluctuations.
Stifel’s analysts highlight that the potentially affected segments—Broadband, Connectivity, and IMM—are currently operating at roughly 67% below their peak run-rates from the fourth quarter of 2022. Nonetheless, they see a positive outlook for the Infrastructure segment, which is well-positioned to benefit from long-term secular program ramps in Cloud/Data Center, 5G Infrastructure, and Enterprise/Data Center storage.
The firm’s 12-month price target of $16.00 for MaxLinear is based on 2.6 times the enterprise value to estimated CY26 sales. This valuation reflects Stifel’s confidence in the company’s long-term growth prospects despite the short-term challenges. InvestingPro data shows the company maintains a healthy current ratio of 1.77 and operates with moderate debt levels, with a debt-to-equity ratio of 0.29. These metrics, along with 8 additional exclusive ProTips and extensive financial analysis, are available to InvestingPro subscribers.
In other recent news, MaxLinear, Inc. has announced the availability of its new 1.6T PAM4 SERDES and DSP technology, named Rushmore, designed to enhance performance in AI/ML networking applications. The company is also collaborating with Morelink Technology Corporation on a new 5G Repeater platform, incorporating MaxLinear’s MxL1600 RF transceivers to improve energy efficiency and connectivity. Meanwhile, MaxLinear’s corporate family rating was downgraded by Moody’s Ratings to B3 from B1, citing disappointing financial performance and weak EBITDA margins. Despite these challenges, the company’s large cash balance and outsourced manufacturing model have helped maintain high gross margins.
Stifel has revised its price target for MaxLinear shares to $16 from $26, maintaining a Buy rating. The firm anticipates stable growth driven by key product launches in 2025. Similarly, Benchmark has adjusted its price target to $20 from $28, also keeping a Buy rating, noting that MaxLinear is undervalued and poised for growth despite macroeconomic challenges. Analyst David Williams from Benchmark highlighted the company’s recent design wins with a North American telecommunications provider as a potential revenue opportunity.
MaxLinear is involved in an arbitration with Silicon Motion (NASDAQ:SIMO) Technology Corp., following the termination of an acquisition agreement, which could impact its financial outlook. Despite this, the company’s strategic focus on emerging technologies and infrastructure development is expected to support its future performance.
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