Shares of Irvine-based chipmaker Microsemi Corp. rose Thursday after an analyst upgraded the stock and said the company has “considerable momentum” for growth.
The stock was up about 2% after Caris & Co. analyst Nicholas Aberle upgraded it to a “buy,” according to an Associated Press report.
“Our investment thesis is bolstered by expectations for financial out-performance not just in the third quarter, but also over the next several quarters,” Aberle wrote in a research note.
Aberle disagrees with other investors who expect the company to be hurt by excess supplies.
Inventories actually have grown amid a longer manufacturing cycle on certain products, Aberle said, rather than just weak demand.
He said he expects inventories to peak in September.
Microsemi, which makes chips that power satellites, military aircraft, medical equipment and other things, has seen its stock price rise nearly 40% in the past year.
The company has a market value of about $1.9 billion.
The company is set to announce results for the June quarter on July 26.
