UPDATE: Stifel Nicolaus Upgrades Supertex to Buy on New Product Cycles

Stifel Nicolaus upgraded Supertex

from Hold to Buy and announced a $26.00 price target. Stifel Nicolaus noted, "Over the last 12-18 months, Supertex has released a number of new products that are gaining market acceptance. Over the next couple of years, we see the potential for these new products to drive upside to current estimates and expectations. In addition, Supertex has a healthy balance sheet with $136.9mn cash with no debt and inventory at a multi-year low, and there are both gross margin leverage and operating leverage in the model. As such, we are upgrading SUPX stock from Hold to Buy and establishing a 12-month target price of $26 based on 2.2x EV/CY14E sales." Supertex closed at $19.73 on Monday.