Drexel Hamilton Starts Altera (ALTR) at Buy Ahead of expected 4G Build
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Price: $32.94 +0.70%
Rating Summary:
7 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
7 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade ALTR Now!
Drexel Hamilton initiated coverage on Altera (NASDAQ: ALTR) with a Buy rating and a Price target of $45.00.
Analyst said they believe share gains into a 4G infrastructure build puts Altera on the verge of repeating the nearly two-year 2009-2011 growth spurt that pushed reported earnings well ahead of views.
“Following a 10.0% year-year drop in 2012 from first half inventory adjustment, 2013 revenues are projected to rise 21.9% in 2013 accompanied by improving gross and operating margins that should extend to further gains in 2014,” said analyst Richard Whittington.
Altera and Xilinx (Nasdaq: XLNX) control 95 percent of a high margin $5 billion programmable logic market that continues to be marked by high entry barriers.
“While end of product shelf life sales for older process nodes boosted Xilinx sales and concomitantly truncated Altera demand earlier this year, the table has appeared to return to its earlier benefit to the latter as it rolls out superior products,” said Whittington.
“Should Altera continue gaining share at advanced process nodes while adding new IP at a quicker rate than Xilinx, they will not only capitalize on upcoming 4G infrastructure build but situate for gains in industrial and automotive as well,” added the analyst.
For an analyst ratings summary and ratings history on Altera click here. For more ratings news on Altera click here.
Shares of Altera closed at $37.09 yesterday, with a 52 week range of $29.67-$41.63.
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Analyst said they believe share gains into a 4G infrastructure build puts Altera on the verge of repeating the nearly two-year 2009-2011 growth spurt that pushed reported earnings well ahead of views.
“Following a 10.0% year-year drop in 2012 from first half inventory adjustment, 2013 revenues are projected to rise 21.9% in 2013 accompanied by improving gross and operating margins that should extend to further gains in 2014,” said analyst Richard Whittington.
Altera and Xilinx (Nasdaq: XLNX) control 95 percent of a high margin $5 billion programmable logic market that continues to be marked by high entry barriers.
“While end of product shelf life sales for older process nodes boosted Xilinx sales and concomitantly truncated Altera demand earlier this year, the table has appeared to return to its earlier benefit to the latter as it rolls out superior products,” said Whittington.
“Should Altera continue gaining share at advanced process nodes while adding new IP at a quicker rate than Xilinx, they will not only capitalize on upcoming 4G infrastructure build but situate for gains in industrial and automotive as well,” added the analyst.
For an analyst ratings summary and ratings history on Altera click here. For more ratings news on Altera click here.
Shares of Altera closed at $37.09 yesterday, with a 52 week range of $29.67-$41.63.
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