ARC International "buy"

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analyst Mark Davis of Panmure Gordon & Co maintains his "buy" rating on ARC International Plc (ARK-GBX). The target price is set to 40p.

In a research note published this morning, the analyst mentions that the company has signed a license deal worth $11 million with Tier-1 Semiconductor Company. ARC International is likely to achieve significant growth going forward through product launches, terms of licenses and potential increase in royalties, the analyst says. The company is expected to undertake M&A activity in 2007, to order to boost its position in the configurable semiconductor market, Panmure Gordon & Co adds.