Needham & Company Upgrades Intersil (ISIL) to Buy, $12 PT

July 31, 2013 8:01 AM EDT Send to a Friend
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Price: $14.05 +0.86%

Rating Summary:
    5 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 11
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Needham & Company upgraded Intersil (NASDAQ: ISIL) from Hold to Buy with a price target of $12.00 following solid Q2 results.

Analyst Vernon Essi, Jr. comments, "ISIL reported a Q2 revenue and EPS above its original guidance and consensus estimates. Moreover, the Q3 guidance was materially above consensus expectations as management is already delivering proof of its “rebalancing” efforts within the company. While CEO Sayiner outlined some broad strokes regarding the restructuring of Intersil (focus on power mgmt, stop funding emerging and commodity applications, migrate away from being a broad-line analog supplier, etc.) the details were somewhat limited. Regardless, ISIL delivered big upside in Industrial & Infrastructure and has a strong Consumer pipeline that should drive Q3 revenue. With regards to the long-term financial model, we see revenue increases likely for 2014 in I&I and Consumer that will drive EPS upside bias with less decline in Computing vs. our original forecast. Also, we anticipate OPEX to come in lower than mgmt’s $55-60M/Q long-term guidance. Finally, the CFO
search continues. We increased our 2013 revenue/EPS estimates from $547M/$0.35 to $569M/$0.52 and our 2014 estimates from $557M/$0.40 to $601M/$0.70. We upgrade to a Buy rating (was Hold) and introduce a $12 Price Target."

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

Shares of Intersil closed at $9.25 yesterday.




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