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Needham & Company Maintains a 'Buy' on Ikanos Communications (IKAN); 2012 Remains A Transition Year; Continues To Execute With New Products

October 28, 2011 8:30 AM EDT
IKAN Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Buy' on Ikanos Communications (NASDAQ: IKAN) price target cut from $1.50 to $1.40.

Needham analyst says, "Ikanos reported 3Q11 results in-line with guidance and slightly better than our estimates. 4Q11 guidance is also better than our model, but investors should realize that 4Q11 sales and GM will benefit from last time buys and the sale of previously written down inventory. Looking to 2012, we expect revenue will decline through 2Q12 as the benefit from last time buys goes away. From the 2Q12 trough, we see new product ramps driving a return to sequential growth. We remain optimistic about the company’s new products, especially NodeScale Vectoring that continues to successfully pass carrier lab trials. Though our estimates have been reduced to reflect uncertain carrier spending and deployment schedules in 2012, we encourage investors to focus on the new product ramps."

For more ratings news on Ikanos Communications click here and for the rating history of Ikanos Communications click here.

Shares of Ikanos Communications closed at $0.85 yesterday, with a 52 week range of $0.75-$1.62.


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