Zacks Investment Research upgraded shares of Tessera Technologies, Inc (TSRA) from UNDERPERFORM to NEUTRAL on January 14, 2013, with a target price of $18.00.
Tessera is a provider of back-end technology for semiconductor manufacturing. Its technology enables miniaturization of electronic goods, which is a driver of IC sales in the market today. Consequently, the host of patents, new technologies and customer wins are encouraging factors. While the protection of intellectual property (IP) for a company this small has always been a challenge, Tessera is now focusing on products-based sales. This will reduce the uncertainty of the revenue stream (when customers don't renew contracts or refuse to pay up). Downsides include the resultant shrinking of margins, as well as the inherent pricing pressures in the DRAM market. With the DRAM market also expected to improve in 2013, we have turned more optimistic and are therefore upgrading TSRA shares to Neutral.
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