UBS Downgrades Sigma Designs (SIGM) to Sell; Cash Burn Rate High, Sales Catalysts Low
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Price: $4.58 -1.51%
Rating Summary:
2 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
2 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade SIGM Now!
UBS downgraded Sigma Designs (NASDAQ: SIGM) from Neutral to Sell with a price target of $5.00 (from $5.50).
Analyst, Steven Chin, said, "Downgrading for four reasons: 1) core IPTV sales have yet to recover and relies heavily on telco spending, 2) digital TV (DTV) consolidation between MediaTek and MStar could dampen growth expectations for Sigma’s recently acquired Trident DTV business, 3) cash burn remains a concern given low sales base and management’s reluctance to reduce operating costs, 4) activist shareholder battle for board seats takes management focus away from operations."
FY13 EPS estimate lowered from (1.63) to (1.67) and FY14 from (1.03) to (1.46).
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 $6.35 yesterday, with a 52 week range of $4.65-$8.88.
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Analyst, Steven Chin, said, "Downgrading for four reasons: 1) core IPTV sales have yet to recover and relies heavily on telco spending, 2) digital TV (DTV) consolidation between MediaTek and MStar could dampen growth expectations for Sigma’s recently acquired Trident DTV business, 3) cash burn remains a concern given low sales base and management’s reluctance to reduce operating costs, 4) activist shareholder battle for board seats takes management focus away from operations."
FY13 EPS estimate lowered from (1.63) to (1.67) and FY14 from (1.03) to (1.46).
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 $6.35 yesterday, with a 52 week range of $4.65-$8.88.
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