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.
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