Evercorp Maintains on Applied Micro Circuits

In a report published Friday, Evercorp analyst Patrick Wang maintained Overweight on Applied Micro Circuits (NASDAQ: AMCC), with a $20.00 price target.

According to the report, the analyst's thesis remains intact, based on the forthcoming disruption created by the ARM server camp that's led by X-Gene.

“Despite MarQ guidance that slightly missed lowered investor expectations, they remain constructive as (1) the X-Gene family remains on track and (2) assuming little to no growth this year (unlikely), the core business is capable of funding R&D for the foreseeable future,” the report noted.

Some highlights from the report included:

-X-Gene revs NOT pushed out -Profits look safe and cash robust -Valuation offers support

AMCC closed Thursday at $11.35.