Why Are MaxLinear Shares Trading Higher Today?

Analysts raised their price targets on MaxLinear Inc MXL following the Q3 beat.

The radiofrequency and mixed-signal integrated circuit provider reported Q3 FY21 revenue of $229.8 million above the consensus of $223.9 million. EPS of $0.75 beat the consensus of $0.67.

MaxLinear sees Q4 revenue of $240 million - $250 million above the consensus of $228.8 million.

Needham analyst Quinn Bolton raised the PT to $67 from $54, implying a 29.5% upside, and reiterated a Buy. The analyst cites the company's Q3 results coming at the high end of its pre-announced range, with Q4 guidance also seen "nicely ahead of expectations." 

Strength in the company's Broadband and Connectivity segments drove most of the upside as MaxLinear benefits from new program ramps, share gains, increases in content per platform, and robust end-market demand, Bolton notes.

Deutsche Bank analyst Ross Seymore raised the PT to $55 from $45, indicating a 6.3% upside, and maintained a Hold. 

The company's "substantial" Q3 beat highlights a continuation of solid demand trends for its broadband and connectivity segments, as well as "excellent management execution in the face of ongoing supply constraints," Seymore notes. However, the analyst views the stock as fairly valued at current levels.

Susquehanna analyst Christopher Rolland raised the PT to $55 from $45 and affirmed a Positive.

The analyst said its solid execution, new market opportunities, and the continued benefits from the Intel Corp INTC Gateway business are setting the story up increasingly well for 2021.

Wells Fargo analyst Gary Mobley raised the PT to $55 from $45 and reiterated an Equal Weight. The analyst cites better-than-expected Q3 results and above-consensus Q4 guidance.

Craig-Hallum analyst Richard Shannon raised the PT to $80 from $75, implying a 54.7% upside, and affirmed a Buy.

The analyst notes MaxLinear delivered a "fantastic" Q4 guide, handily beating prior consensus. Shannon adds that supply tightness looks to be improving from here, and demand continues to be very strong across MaxLinear's end markets.

Price Action: MXL shares traded higher by 18.4% at $61.26 on the last check Thursday.