RadiSys (RSYS) PT, Estimates Trimmed at Needham & Company; 2nd-Half Ramps Appears Intact
- U.S. GDP Fell 0.7% in Q1 Amid Weaker Goods Exports, Business Investment - 2nd Est.
- Equinix (EQIX) to Acquire TelecityGroup in $3.6B Deal
- Pre-Open Stock Movers 05/29: (TBIO) (HRTX) (NQ) Higher; (FRO) (SPLK) (CYBR) Lower (more...)
- Intel (INTC) Said Near $15B Offer for Altera (ALTR)
- Avago Technologies (AVGO) PT Raised to $180 at Brean Capital
Needham & Company analyst Richard Valera cut estimates and his price target on RadiSys (NASDAQ: RSYS) to $5.00 (from $6.00) but maintained a Buy rating following mixed Q1 results although a 2nd-half ramp appears intact.
Valera commented, "While we find the incremental weakening of RSYS' audio conferencing business a bit disappointing, and this resulted in a trim to our EPS estimates, we came away from the 1Q report feeling RSYS is continuing to make solid progress in its important MRF business and is well positioned to see a strong ramp in 2H14 earnings driven by increased Software Solutions and benefit from its contract manufacturing restructuring, which could add~300bps of GM. While acknowledging some risk to our steep projected 2H ramp, we believe if RSYS can execute toward it the shares can work materially higher from current levels. Maintain Buy and $5 PT (was $6), or ~18x 2015E EPS."
The firm trims 2014 estimates, now $206MM and $0.07 NG EPS vs $208MM and $0.14 NG EPS. 2015 goes to $207MM/$0.28 from $212M/$0.32.
Shares of RadiSys closed at $3.22 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham & Company Raises Price Target on Infoblox (BLOX) Following 3Q Results
- Wedbush Raises Price Target on Omnivision Technologies (OVTI) Following FQ4 Results
- MKM Partners Lifts PT on Avago (AVGO) to $160; No Other Suitors for Broadcom (BRCM) Expected
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!