Sterne Agee Reiterates Buy Rating On CEVA

According to Sterne Agee, CEVA (NASDAQ: CEVA) Buy rating is reiterated.

Sterne Agee said that in 2010, almost 1B 2G/2.5G handsets were shipped which continues to be a strong target market for CEVA with Nokia (NOK, $6.26, Not Rated). We believe CEVA is also seeing strong traction with STEric (ERIC, $14.06, Not Rated) tablets into Galaxy Tablets and Optimus Phones. “Reiterating our Buy and $33PT, which is 33x our CY12E EPS of $0.98. Our target multiple is still a discount to peer ARM Holdings (ARMH, $28.54, Not Rated), which is trading at 43x CY12E EPS. We believe CEVA continues to execute with opportunities into China and a strong 3G/4G Smartphone market and modem market.”

CEVA closed yesterday at $31.24.