On Tuesday, Deutsche Bank increased its price target on shares of Alphawave IP Group PLC (AWE:LN), a semiconductor company, from GBP1.52 to GBP1.75 while maintaining a Buy rating on the stock.
This adjustment follows Alphawave's announcement last week of a significant increase in Q2 orders, which reached $107 million, marking a 27% year-over-year rise and surpassing the bank's forecast of $103 million in quarterly bookings.
The company also reported a record number of design wins in the quarter, securing 14 new design wins, primarily in IP licensing. One notable deal included a Flexible Spending Account (FSA) agreement with a major semiconductor company, which analysts believe to be Intel (NASDAQ:INTC).
The FSA deal grants extensive access to Alphawave's portfolio of connectivity IPs, which is noteworthy given Intel's history of acquisitions in the networking space, including the purchase of Barefoot Networks.
In addition to the FSA agreement, Alphawave appears to have made strides with Bytedance, the owner of the popular social media platform TikTok. Bytedance was mentioned as a SerDes IP licensee, despite reports of its collaboration with Broadcom (NASDAQ:AVGO) on developing an advanced AI processor. This suggests Alphawave's competitive edge in securing business even when potential clients are exploring partnerships with other industry players.
The positive developments in Alphawave's business, as reported by Deutsche Bank, reflect a robust performance in the semiconductor industry and the company's ability to attract and retain high-profile clients. The raised price target to GBP1.75 from GBP1.52 by Deutsche Bank underscores the company's growth trajectory and market potential.
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