Needham Sees Cypress Semi (NASDAQ:CY) Shares Up 20 Percent

Cypress Semi (NASDAQ:CY) appears to be forming a strong "touch" story in 2011 and forward, says Needham, along with solid product cycles.

Needham says, "Last week, CY’s CFO (Brad Buss) presented at the Needham 13th Annual Growth Conference. In our opinion, there were four notable items from the conference: 1) TrueTouch is gaining momentum; 2) rolling out single-chip for tablets; 3) expanding touch capacity to support demand throughout 2011; and 4) sales funnel for new products (PSoC3/5) ramping well. We believe CY is at the forefront a multi-year secular story in capacitive touch along with solid product cycles to boot. We see continued value for the shares north of 20%...We are introducing 2012 Non-GAAP estimates of $1.20BN/$1.70. Our 2011 estimates remain unchanged."

Needham & Company reiterates a "Buy" rating on Cypress Semi (CY), which was trading at $21.25, up $0.10, or 0.47 percent, as of 11:21 AM EST. Needham raised their price target on Cypress from $20 to $26.