Deutsche Bank Has 4 Top Pick Semiconductor Stocks to Buy Into Earnings

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MaxLinear

This is a smaller cap player that could provide big upside for investors. MaxLinear Inc. (NYSE: MXL) is a global provider of integrated, radio frequency and mixed-signal integrated circuits and systems on chip (SoCs). The company is a pioneer in multimedia over coax alliance (MoCA) technology, and its products serve broadband communications and infrastructure industries, including cable TV, satellite TV, data center, metro and long-haul optical transport network applications.

The stock is at a discount to peers, and it is another company that could be a very viable takeover candidate. MaxLinears partnership with Celeno Communications, a leading provider of high-performance Wi-Fi silicon and software solutions, and jointly references designs that combine the best in MoCA and Wi-Fi home network technologies to enable whole-home gigabit Wi-Fi.

The $30 Deutsche Bank price target for the shares compares with the consensus target last seen at $31.67. The stock ended last week’s trading at $25.16 a share.

Microsemi

This company could benefit from continued industrial demand and is another Top Pick at SunTrust. Microsemi Corp. (NASDAQ: MSCC) offers a comprehensive portfolio of semiconductor and system solutions for communications, defense and security, aerospace and industrial markets.

Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, power management products; timing and synchronization devices and precise time solutions, setting the world’s standard for time; voice processing devices; RF solutions; security technologies and scalable anti-tamper products; Ethernet solutions; Power-over-Ethernet ICs and midspans.

Microsemi employs a unique, mergers and acquisitions–focused business model in the rapidly growing semiconductor space. This business model allows it a valuable balance between growth and diversity. It gives Microsemi the ability to touch all parts of the semiconductor market, allowing for seasonal strength in some markets to offset seasonal weakness in others.

The Deutsche Bank price target was last seen at $63. The posted consensus target is $62.73. Microsemi shares closed Friday at $58.18 apiece.

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The Deutsche Bank analysts are avoiding the super high-flying momentum plays and focusing on companies that still have the ability to increase their valuations while staying relevant in the hot new chip areas.