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Cantor Fitzgerald Reiterates a 'Buy' on Microsemi (MSCC); Confidence Bolstered After Meeting with Management

June 13, 2012 10:07 AM EDT Send to a Friend
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Price: $24.26 --0%

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Cantor Fitzgerald reiterates a 'Buy' on Microsemi Corporation (NASDAQ: MSCC) price target of $28.00.

Analyst, Daniel Gelbtuch, said, "Reiterates rating on MSCC following recent marketing with management, who sounded confident in their abilities to: a) maintain 8-12% defense growth, b) achieve 60/30 gross/operating margins during FY13, c) lower Debt-to-EBITDA from ~2.9x to 2x, and d) consistently deliver clean quarters with earnings momentum. In light of Microsemi's numerous secular growth vectors, synergies and operating levers, rich cash flows, and best-of-breed execution, we would be buyers, and view MSCC as perhaps the best GARP story in semis."

Gelbtuch also thinks that the company's Defense unit will continue to be strong and fears of Pentagon cuts are overblown. Separately, the recent acquisition of Zarlink is showing positive signs. A third positive is continued signs that companies like HP (NYSE: HPQ) and Cisco (Nasdaq: CSCO) are continuing ramp up of PoE.

For an analyst ratings summary and ratings history on Microsemi Corporation click here. For more ratings news on Microsemi Corporation click here.

Shares of Microsemi Corporation closed at $17.69 yesterday.




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