Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
800 Shades Creek Parkway
Suite 700
Birmingham, AL 35209
205-949-3500
Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
Earnings Summary
FYE Dec
2009A
2010E
2011E
Sales:
$38.5
$43.0
$49.7
Prior Sales:
--
--
--
EPS & P/E Summary
2009A 2009 Previous
2010E 2010 Previous
2011E 2011 Previous
EPS:
Q1
$0.11
--
$0.12A
--
$0.14
--
Q2
$0.08
--
$0.10
--
$0.14
--
Q3
$0.12
--
$0.13
--
$0.16
--
Q4
$0.11
--
$0.13
--
$0.17
--
Full Year
$0.42
--
$0.48
--
$0.61
--
P/E Ratio:
--
--
--
--
--
--
Fiscal Year Ends Dec
Rating:
Buy
Price: Close
$12.42
Price Target:
$15.00
52-wk Range:
$7.85-$13.46
Market Capitalization (M):
$260.6
Shares Outstanding (M):
21.9
Avg. Daily Vol. (000):
162.9
Dividend Yield:
NA
Debt/Total cap:
NA
EPS Growth Rate:
10.0%
L-T Organic Revenue Growth:
15.0%
Short Interest:
5.0%
Book Value/Share:
$4.96
Vijay Rakesh
(312) 525-8431
vrakesh@sterneagee.com
June 29, 2010 | 16 Pages
CEVA INC. (NNM: CEVA)
CEVA: INITIATING COVERAGE WITH A BUY RATING, GAINING
HANDSET SHARE ON THE BACK OF APPLE AND DESIGN
WINS
Increasing Market Share in Consumer and Handset Baseband
Platforms: While ARM Holdings still holds the lion's share in the
handset baseband market, CEVA is rapidly gaining share, with
market share growing from approximately 13.5% of the handset
market in Q407 to 26% of the market in 1Q10. With CEVA
gaining rapid traction into handset and consumer multimedia
compression platforms, CEVA could get to 40% share by the end
of 2012. Also, while AAPL has changed the key processor on its
iPhone and iPad from Samsung to its own A4, it continues to use
an Infineon baseband using CEVA-based IP. We believe AAPL
traction will continue to be a key tailwind for CEVA as it
cont