Demand for consumer electronics like tablets, notebooks, and wearables continues to be healthy given the work-from-home and overall "stay-at-home" trend, and that's continuing to boost the results at Dialog Semiconductor (OTCPK:DLGNF). Not only did management guide to a healthy beat relative to the sell-side for the third quarter, but it also said that strength has continued on into the fourth quarter.
I was bullish before on Dialog, and I'm still bullish after this little run-up in the shares. I believe the Street continues to undervalue the company's sub-PMIC content opportunities with Apple's (NASDAQ:AAPL) iPhones, as well as opportunities in areas like battery management and charging. Longer-term opportunities in IoT are definitely more "show me" stories, as is the possibility of the company using partnerships with Xilinx (NASDAQ:XLNX) and Renesas (OTCPK:RNECY) to leverage its power management capabilities into auto market segments like ADAS and infotainment. With the shares offering attractive upside on the sub-PMIC business and heavily discounted long-term estimates of IoT and auto sales, I believe these shares are attractive.
The reported liquidity on Dialog ADRs is not good, but more and more brokers have made trading in European markets easy and relatively cost-effective.
Read more here:
Upgraded Guidance Boosts The Dialog Semiconductor Bull Argument
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