Jun 13th 2012 - Edison Investment Research today published a report on IQE (IQE.L, LSE:IQE, LON:IQE) entitled "Transformative Deal". In summary, the report says:
The acquisition of RFMD’s wafer production operations expands IQE’s wireless operations by around 30% and considerably diversifies its customer exposure. It also gives the company capacity to significantly scale up its CPV solar production with a minimal capital outlay. We have increased 2013e earnings by 25% and believe that the risk to our estimates remains on the upside. The rating of 11.7x 2013 earnings is now a discount to its peers, and thus does not reflect the transformative impact that this deal will have on IQE’s competitive position or its cash generation potential.
Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »
