Needham upgrades MaxLinear to Buy on infrastructure ‘inflection’

Needham upgraded MaxLinear (MXL) to Buy from Hold with a $60 price target The stock in premarket trading is up 40%, or $13.76, to $48.01. The firm says the business has reached an “inflection point” following the Q1 beat and above-consensus guidance. Infrastructure has surpassed broadband as MaxLinear’s largest revenue contributor and this should drive multiple expansion, the analyst tells investors in a research note. Needham expects the company’s cash flow to turn “meaningfully positive” and mitigate any potential risk from the Silicon Motion arbitration. It sees further share upside as MaxLinear “re-rates as a data center infrastructure play.”