Shares of Newport Beach chipmaker Conexant Systems Inc. jumped 17% on Thursday after an analyst upgraded the company, citing positive management changes.
CIBC World Markets analyst Allan Mishan rated the stock “sector outperformer” from “sector performer,” according to an Associated Press report.
Conexant counted a recent market value of about $657 million.
Mishan said he was pleased with recent management changes, which could lead Conexant to overhaul its executive team.
On Wednesday, Conexant named Karen Roscher as chief financial officer. She’s set to replace J. Scott Blouin, who stepped down to take another job.
“With a new CFO announced yesterday to join recently installed CEO Dan Artusi, we believe significant change including real restructuring is likely,” Mishan said in a research note.
A restructuring could cut costs by 10% to 15 %, he said.
Artusi became president and chief executive in early July, replacing Dwight Decker, who retired in April.
The upgrade was a much needed boost for the struggling chipmaker, which has seen its stock fall by some 50% since it hit its peak in December.
