Cypress Semiconductor Corporation (NASDAQ:CY) spent a volatile session in the last trading day of the week, especially after the big rally on Thursday but ended the day almost flat with a very modest gain of 0.15%. The volume remained high as it touched 20 million, nearly three times the daily average of 7 million only.
Even a lower than expected quarterly result failed to push Cypress Semiconductor Corporation (NASDAQ:CY) down further. The company reported an adjusted first quarter loss of $0.45 per share against the expected profit of $0.06 but the market quickly realized that an acquisition cost of $107 million was adjusted by the company as a part of the acquisition of Spansion Inc. Otherwise, the earning per share would come at $0.10, better than the consensus figure. On the other hand, the revenue at $209.10 million came a bit lower than the expected $212.9 million but the market shrugged it off.
The retirement of J. Daniel McCranie, the executive vice president of sales and applications of Cypress Semiconductor Corporation (NASDAQ:CY) was also announced, who would be succeeded by Michael Balow.
The stock has been upgraded to “strong buy” from “buy” by the Needham analyst Rajvindra Gill, with the price target remaining unchanged at $20. Wedbush has reiterated their outperform rating too but decreased the price target to $17 from the earlier $18 levels. The recent positivity about the stock comes from the solid guidance reported by the company in its first consolidated quarter with CODE. The increased synergy target of $160 million from the previous $135 million boosted the sentiment too.
Technically, the bullish sentiment remains intact as long as the stock trades above $12.25. Still the important $13 level, acting as a major support/resistance for a long time, must be controlled by the bulls very soon.
