Shares of Lattice Semiconductor Corp. climbed Monday after Morgan Stanley analyst Mark Lipacis upgraded the chip maker, saying it will likely gain share in the wireless market.
Lipacis raised his rating to "Equal-weight" from "Underweight" and increased his target price to $6 from $4.
"We now expect Lattice's mid-range products to take share from the more expensive products of Altera and Xilinx (both 'Equal-weight') in the wireless infrastructure market," the analyst wrote in a note to investors.
The overall chip sector traded higher Monday, with the Philadelphia Semiconductor Sector index up 5 points, or 1.4 percent, to 354.16 in afternoon trading.
Lipacis said Lattice has restructured its business to focus more on profitable, low-cost product lines while phasing out its higher-end products, which "lagged competition."
"Our analysis indicates the stock is baking in higher estimates, and should trade in line with (competitors)," the analyst wrote.
Shares of the Hillsboro, Ore.-based company rose 29 cents, or 5.7 percent, to $5.41 in afternoon trading. In the past 52 weeks, the stock has traded between $1.68 and $5.97.
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