As reported earlier, MKM Partners analyst Ruben Roy initiated Cypress Semi with a Buy rating and and a price target of $20. The analyst says that the company has recently "redefined itself" with a sharper focus on strategic growth, as the management looks to leverage its intellectual property with new high-growth potential investments. Roy also notes that the recent weakness in the stock reflecting lower expectations for Cypress Semi's NOR flash business is unfounded, as the NOR business will likely be protected from the average selling price swings in 2019 given its higher exposure to high-value auto and industrial end market industries. The analyst further states that the company's focus on higher value end markets can boost its gross margins above 50% from 46.3% reported in Q2, adding that the risk-reward on Cypress Semi is favorable at 9.8-times expected forward earnings multiple vs. 17.0-times for the broader semiconductor peer group average multiple.