Sigma Designs (SIGM): Revenue Headwinds Drive PT Cut - Baird

Baird analyst, Tristan Gerra, reiterated his Outperform rating on shares of Sigma Designs (NASDAQ: SIGM) but cut his price target noting that the company faces several revenue headwinds.

The company is facing a secular decline of HPNA revenue, a difficult revenue comp and ASP pressures in Sigma's TV-related business. As a result, revenue outlook could be flat and PF EPS breakeven at best for F2018. IoT-related revenue is expected to grow next year, including an initial ramp for mobile IoT.

The analyst thinks that improving prospects of Sigma being acquired should mute the stock impact but the PT goes to $8 from $9.

For an analyst ratings summary and ratings history on Sigma Designs click here. For more ratings news on Sigma Designs click here.

Shares of Sigma Designs closed at $7.75 yesterday.

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