Needham & Company Maintains a 'Hold' on Standard Microsystems (SMSC); Shareholders Approve Merger with Microchip (MCHP)

July 12, 2012 7:31 AM EDT
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Price: $36.98 --0%

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    4 Buy, 2 Hold, 0 Sell

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Needham & Company maintains a 'Hold' on Standard Microsystems (NASDAQ: SMSC).

Analyst, Vernon Essi, Jr, said, "Earlier this week SMSC shareholders voted in favor of Microchip’s (Nasdaq: MCHP)(N/R) offer of $37 in cash. This equates to about $939M and a total enterprise value of $766M less SMSC’s cash balance of $172M. Pending antitrust approval in China (which we don’t view as a material hurdle) the acquisition is expected to close in Q3 CY12. Shareholder approval of the acquisition was widely anticipated...We continue to view the acquisition favorably and expect SMSC shares to offer nominal upside to the $37 acquisition price from today’s level." (FY13 EPS estimate raised from $1.75 to $1.95)

For an analyst ratings summary and ratings history on Standard Microsystems click here. For more ratings news on Standard Microsystems click here.

Shares of Standard Microsystems closed at $36.82 yesterday.

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