Benchmark sees ‘attractive entry point’ for MaxLinear with deal overhang cleared

Benchmark says MaxLinear (MXL) delivered “disappointing” Q2 results and guidance, but while inventory digestion remains a near-term headwind, underlying strength in design wins, new product ramps, share gains and content expansion support its mid and longer-term growth expectations. The firm remains positive on the stock and views the current share price as “an attractive entry point ahead of the turn” and reiterates its Buy rating and $35 price target on MaxLinear shares. Following “a tumultuous day” after reports the Silicon Motion (SIMO) deal received SAMR approval only later to see the company announce the transaction was terminated, Benchmark added that it is “relieved the outcome of the deal is as we had anticipated and encouraged the merger overhang is now cleared.”