Brean Starts Coverage Of Integrated Device Technology At Buy

Over the years, Integrated Device Technology Inc (NASDAQ: IDTI) has gained a strong footing in providing the fundamental components that support the proper functioning of electrical systems and circuits. The company has growth through internal R&D, acquisitions and alliances. Brean Capital’s Mike Burton initiated coverage of the company with a Buy rating and a $26 price target.

“Currently, IDTI is the leader in ICs that provide clocking technology, a critical function that any electrical circuit board needs in order to manage and properly time major components such as the MPUs and DSPs that perform the critical processing functionality,” analyst Mike Burton wrote.

Opportunities Ahead

The SerialRapid IO, or SRIO, products are likely to drive the company’s larger opportunities going ahead. Integrated Device Technology already has a large market share in the wireless base station market.

Integrated Device Technology’s execution in the timing or clocking market segment indicates success for the company going ahead. Integrated Device Technology is likely to continue building upon its current product base, while entering new markets and continuing to refine its business model closing the gap with its high performance, analog peers, Burton mentioned.

Silicon timing devices are increasingly replacing crystal oscillators. The analyst believes the total market for timing devices in the communications segment is a “multi-billion dollar market opportunity.”

The Brean Capital report noted, “Because of cost and performance advances, silicon timing devices have slowly become the clocking mechanism of choice by design engineers, hence we see continued penetration with the company’s new silicon based timing products as they are now capable of providing the required precise timing that can be used in line cards and controllers.”