Jefferies Cuts Numbers On PMC-Sierra (PMCS) But Keeps Buy On Signs of Recovery
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Price: $5.83 -0.34%
Rating Summary:
0 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Rating Summary:
0 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Trade PMCS Now!
Jefferies cut its price target and estimates on PMC-Sierra (NASDAQ: PMCS) after Q1 results, but keeps its Buy rating.
The price target moves from $9.00 to $8.50. Q1 EPS estimates go lower from $0.11 to $0.05, FY12 EPS goes lower from $0.60 to $0.50 and FY13 goes higher from $0.73 to $0.79.
The firm comments, "We think investors will be disappointed by weak Q1 revenue guidance. We expect Storage (60% of revs) to recover nicely with HDD supply and Mobile Backhaul (15%) to contribute additional growth starting in Q2, helped by a recovery in Telco CapEx. The stock remains unloved, trading at a ~40% discount to the group EV/S, and we think the risk/reward is favorable with the bar lowered. Reiterate Buy with a $8.50 PT."
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $6.74 yesterday, with a 52 week range of $4.91-$8.47.
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The price target moves from $9.00 to $8.50. Q1 EPS estimates go lower from $0.11 to $0.05, FY12 EPS goes lower from $0.60 to $0.50 and FY13 goes higher from $0.73 to $0.79.
The firm comments, "We think investors will be disappointed by weak Q1 revenue guidance. We expect Storage (60% of revs) to recover nicely with HDD supply and Mobile Backhaul (15%) to contribute additional growth starting in Q2, helped by a recovery in Telco CapEx. The stock remains unloved, trading at a ~40% discount to the group EV/S, and we think the risk/reward is favorable with the bar lowered. Reiterate Buy with a $8.50 PT."
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $6.74 yesterday, with a 52 week range of $4.91-$8.47.
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