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Needham & Company Cuts PT/Est. on Cypress Semi (CY) Post Q1

April 19, 2013 7:41 AM EDT Send to a Friend
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Price: $9.91 --0%

Rating Summary:
    7 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

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Needham & Company trimmed its price target on Buy-rated Cypress Semi (NASDAQ: CY) from $13 to $12 following better-than-expected Q1 results.

Analyst Rajvindra S. Gill comments: "Cypress reported 1Q13 results that were better than expected, but guided 2Q slightly below the Street (missed the topline by $1MM and by a penny on the bottom line; although they beat our est). 2Q guidance reflects a better than seasonal uptick due to TrueTouch and CapSense product ramps at key customers. Some investors were concerned with the 2Q GM guidance of 51% coming in below Street’s 53%, although we believe margins will improve exiting the year as simply a matter of improving utilization rates at its fab. Given the company’s strong dividend, and commitment to growing TrueTouch revenue 15% to 20% Y/Y and the successful integration of Ramtron we believe the sell off in the shares is an overreaction (down nearly 10%), and with the stock trading ~10x our P/E 2014E, we would recommend investors accumulate shares at these depressed levels. Thus, we reiterate our Buy rating, but are lowering our price target to $12, based on 13x P/E 2014E of $0.95, from $13 PT."

The firm cut FY 2013 EPS estimates from $0.70 to $0.45 and FY 2014 EPS from $1.10 to $0.95.

For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.

Shares of Cypress Semi closed at $9.90 yesterday.




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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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