EZchip (EZCH) is a Buy Despite Concerns - Benchmark
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Price: $27.82 -1.49%
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade EZCH Now!
Shares of EZchip Semiconductor (NASDAQ: EZCH) are getting pounded Wednesday following fourth quarter 2012 results and muted first quarter 2013 guidance. However, one analyst sees the sell-off as a opportunity.
Benchmark analyst Gary Mobley noted that following 1Q13 guidance, "investors are left to question the believability of management's long-term (FY16) revenue target of ~$150 million, which would translate into EPS of power >$2.50. Following the earnings call, investors are also left to question the extent of new customer penetration, specifically Tellabs and Huawei."
Despite the concerns, Mobley said EZchip’s NP-4/NP-5/NPS product cycle ramps will lead to strong, albeit inconsistent, revenue growth.
He published FY14 revenue/EPS (non-GAAP) estimates of $79 million/$1.34, which assume a 20% revenue CAGR for the next two years. He maintained a Buy rating and price target of $40.00.
For an analyst ratings summary and ratings history on EZchip Semiconductor click here. For more ratings news on EZchip Semiconductor click here.
Shares of EZchip Semiconductor closed at $32.24 yesterday, with a 52 week range of $27.02-$46.79.
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Benchmark analyst Gary Mobley noted that following 1Q13 guidance, "investors are left to question the believability of management's long-term (FY16) revenue target of ~$150 million, which would translate into EPS of power >$2.50. Following the earnings call, investors are also left to question the extent of new customer penetration, specifically Tellabs and Huawei."
Despite the concerns, Mobley said EZchip’s NP-4/NP-5/NPS product cycle ramps will lead to strong, albeit inconsistent, revenue growth.
He published FY14 revenue/EPS (non-GAAP) estimates of $79 million/$1.34, which assume a 20% revenue CAGR for the next two years. He maintained a Buy rating and price target of $40.00.
For an analyst ratings summary and ratings history on EZchip Semiconductor click here. For more ratings news on EZchip Semiconductor click here.
Shares of EZchip Semiconductor closed at $32.24 yesterday, with a 52 week range of $27.02-$46.79.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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