InvenSense's Stock Surges As Pokemon Go, AR Opportunities Turn Analyst Bullish

Shares of InvenSense Inc. surged 4.3% in premarket trade Friday, after Pacific Crest turned bullish on the maker of gyroscopes used in smartphones, on the belief that the rise of Pokemon Go and augmented reality will create a "significant opportunity." Analyst John Vinh upgraded InvenSense to overweight, after being at sector weight since October 2014. His stock price target of $9 is 27% above current trading prices. "Without a gyro in a smartphone, users are unable to effectively play Pokemon Go today because of limited navigation capabilities," Vinh wrote in a note to clients. He sees opportunities for InvenSense in a 500 million unit total addressable market, with every 10% market share raising his 2018 earnings-per-share estimate by 11 cents. The stock has tumbled 34% year to date through Thursday, while the S&P 500 index has gained 6.9%.