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Credit Suisse Group Analysts Give Dialog Semiconductor (DLG) a €43.00 Price Target

Credit Suisse Group Analysts Give Dialog Semiconductor (DLG) a €43.00 Price Target

Dialog Semiconductor recorded 2017 third-quarter revenue of $363 million, a record for the company.

The stock has lost half its value since April on investor concerns that Apple is working on its own power chips.

Dialog said in a statement that it continues to supply Apple, with no material change to their relationship.

A report late last week said that Apple is working on a brand new processor of its own - a power management chip that should improve battery life on future iPhone models.

But in comments reported by Reuters, Dialog's chief executive Dr. Jalal Bagherli said on a call to investors Monday that it would be some time before Apple's strategy for 2019 was understood.

However, the Anglo-German chipmaker conceded: "Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years".

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"Apple is obviously not helping Dialog to win this argument with investors".

The technology giant based in the USA said this past April it was planning to replace its supplier of graphics chips Imagination Technologies sending that stock down 70% in one session. Dialog, which has previously declined to name Apple, referring to it only obliquely as its "largest customer" or its "main business", said it had received a special dispensation from Apple to mention it.

Dialog shares were down 18.5 percent to 25.45 euros at 1150 GMT on December 4. Morgan Stanley set a €55.00 ($65.48) price target on Dialog Semiconductor and gave the stock a buy rating in a report on Wednesday, November 8th.

Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.

Bagherli said that Apple's feedback on 2019 products has been "very good" and Dialog will know more come March when new business terms are expected to be signed with Apple for 2019.

Another company, Imagination Technologies, saw its stock drop more than 70% in April, after Apple said it was planning to stop licensing the firm's technology in about two years.