Canaccord reiterates 'buy' rating on IQE following Huawei's US ban

(Sharecast News) - Analysts at Canaccord Genuity reiterated their 'buy' rating on British semiconductor company IQE on Wednesday, noting that their expectations for the group's revenues and earnings remained unchanged despite supply chain tremors caused by last week's US ban on Huawei and Tuesday's profit warning from Lumentum.With IQE management "tracking the situation closely" and following the temporary reprieve issued to Huawei by the White House on Tuesday, Canaccord said it was confident the situation was fluid."Overall management does not expect a material impact of the ban on the company," said Canaccord"We believe IQE has negligible exposure to Huawei in photonics, while in wireless its supply relationships with both US and non-US customers should leave the company relatively agnostic to mid-to-long-term share shifts at the component and OEM level."The Canadian broker did note that the uncertainty and short-term disruption to the smartphone supply chain caused by the ban could continue to be a factor for IQE shares short-term, but given its unchanged expectation of a significant revenue and earnings acceleration for 2019 and beyond, Canaccord stood by its 'buy' rating and 130p target price.