Kaboom.
Shares of International Rectifier Corporation (IRF) rocketed 47% today on news the semiconductor company is being acquired by Infineon (IFX).
Why do we mention it?
Hedgeye semiconductor analyst Craig Berger has been highlighting the upside opportunity in IRF since he assumed his new position at Hedgeye earlier this summer. He first published a bullish research note on IRF back on July 1st. He followed that up with a video on HedgeyeTV shortly afterwards highlighting various M&A opportunities in the space. He also published a note on Monday arguing shares had an attractive risk/reward apart from semi cycle risks with $36 fair value:
We think IRF is one of the better small/mid-cap stories in the chip sector right now, with the potential for meaningful increases in earnings power from cycle to cycle.
Topping it all off, Berger recorded a video on IRF that we released on HedgeyeTV yesterday suggesting shares had considerable upside into the 40s.
It pays to listen to Berger and tune into HedgeyeTV.