Stifel reiterates Buy rating on MaxLinear stock, maintains $21 price target

Investing.com - Stifel has reiterated its Buy rating on MaxLinear (NASDAQ:MXL) stock with a price target of $21.00, according to a recent analyst note. The stock has shown significant momentum with a 15.8% return over the last week, while InvestingPro data shows analyst targets ranging from $15.00 to $27.50, reflecting the market’s mixed outlook on this volatile semiconductor player.

The firm highlighted that the third quarter of 2024 represented a near-term trough for MaxLinear, with revenue of $81.1 million, down 11.8% quarter-over-quarter and 40.2% year-over-year. For the third quarter of 2025, the company has guided to $125.0 million at the midpoint, representing a 14.9% sequential increase and 54.1% year-over-year improvement. InvestingPro analysis indicates that while the company isn’t currently profitable, analysts expect a return to profitability this year, with forecasted earnings per share of $0.26 for fiscal year 2025.

MaxLinear management pointed to six consecutive quarters of bookings improvement and a normalized lead time environment. The company has also implemented operating expense reductions of approximately 25%, resulting in a more streamlined cost structure. With a current ratio of 1.55 and moderate debt levels, the company maintains reasonable financial flexibility to support its turnaround efforts.

According to management, approximately two-thirds of the anticipated 54.1% year-over-year growth in the third quarter of 2025 is likely attributable to a cyclical and inventory recovery, while one-third stems from new products and upgrade cycles. For calendar year 2026, this ratio is expected to reverse, with two-thirds of growth potentially coming from new product ramps and upgrade cycles such as Wi-Fi 6 to Wi-Fi 7.

Management stated that MaxLinear has not been materially impacted by the current tariff environment, though they acknowledged broader ecosystem effects that could potentially lead to double ordering, though no signs of this have been observed in the company’s backlog.

In other recent news, MaxLinear Inc . reported its financial results for the second quarter of 2025, demonstrating steady growth. The company achieved a revenue of $108.8 million, surpassing the forecasted $104.89 million, while earnings per share (EPS) matched analyst expectations at $0.02. In another development, MaxLinear introduced its next-generation Panther V storage accelerator, offering 450Gbps throughput and advanced data processing capabilities, significantly enhancing performance over its predecessor. Additionally, Benchmark raised its price target for MaxLinear’s stock to $25 from $20, maintaining a Buy rating. The firm attributed this optimistic outlook to recovering end markets and the momentum of new products. These recent developments highlight MaxLinear’s ongoing progress and potential in the semiconductor industry.

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