Jefferies Downgrades PMC-Sierra (PMCS) to Hold
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Price: $6.04 -0.66%
Rating Summary:
0 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
0 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade PMCS Now!
Jefferies downgraded PMC-Sierra (NASDAQ: PMCS) from Buy to Hold with a price target of $6.50 (from $8.00) after Q2 EPS beat, but 2H guidance missed.
The firm comments, "We like PMC's Enterprise Storage and Mobile Backhaul exposure, and gross margins, but PMC's revenue growth has underperformed the group since 4Q11, and the CFO's unexpected departure increases execution risk. An extended inventory correction in Storage (~65% of revs) and low visibility in Wintegra are likely to push out revenue growth, making it difficult for the stock to outperform."
The firm cut FY12 EPS from $0.41 to $0.37.
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $5.98 yesterday, with a 52 week range of $4.91-$7.80.
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The firm comments, "We like PMC's Enterprise Storage and Mobile Backhaul exposure, and gross margins, but PMC's revenue growth has underperformed the group since 4Q11, and the CFO's unexpected departure increases execution risk. An extended inventory correction in Storage (~65% of revs) and low visibility in Wintegra are likely to push out revenue growth, making it difficult for the stock to outperform."
The firm cut FY12 EPS from $0.41 to $0.37.
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $5.98 yesterday, with a 52 week range of $4.91-$7.80.
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