NEW YORK (TheStreet) --aInvenSense was upgraded to "strong buy" from "buy" by Needham on Tuesday. The analyst firm maintained its $28 price target for the chipmaker, saying it would use any weakness to buy the stock. "We strongly believe investors should look past the unpredictable nature of short-term fearmongers and remain focused on the long-term strategic mileposts that INVN has met," Needhamn analyst Vernon Essi wrote. "INVN was trading at ~$18 in September 2013 when tear-downs concluded it was it not in the iPhone 5s; fast forward one year and INVN finds itself in the iPhone 6 with upwards of $100M in incremental annual revenue and $0.50 in EPS as a result." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "However," he continued, "at ~$20 the Street appears to be telling us Apple is worth only ~$2 in incremental value for INVN share, which we believe to be patently absurd. We take the opportunity here to upgrade to Strong Buy from Buy, as we would capitalize on any negative sentiment to buy the stock." TheStreet Ratings team rates INVENSENSE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate INVENSENSE INC (INVN) a HOLD. The primary factors that have impacted our rating are mixed --asome indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 19.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Net operating cash flow has slightly increased to $6.69 million or 4.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.33%. Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.99 is very high and demonstrates very strong liquidity. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 146.8% when compared to the same quarter one year ago, falling from $10.32 million to -$4.83 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, INVENSENSE INC's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: INVN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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