Needham & Company Downgrades Microsemi Corporation (MSCC) to Buy as Q4 Near Low-End and Soft Guidance

November 9, 2012 8:13 AM EST
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Price: $56.56 +2.59%

Rating Summary:
    11 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company downgraded Microsemi Corporation (NASDAQ: MSCC) from Strong Buy to Buy with a price target of $24.00 (from $28.00).

The firm comments, "For the 2nd consecutive quarter Microsemi delivered record results. However, despite this notable achievement and an upbeat analyst day in mid September, F4Q12 results came in near the low end of guidance and F1Q13 revenue was guided to decline by 2% to 6% Q/Q due to softer than expected demand in the communications and industrial segments as a result of weak macroeconomic demand. With macroeconomic factors overshadowing in the near-term the organic revenue growth drivers outlined at analyst day, we have reduced our forward revenue and earnings estimates. These reductions effectively push-out our model by a year. Based on our reduced estimates, we can no longer justify a Strong Buy rating. As such, we are lowering our rating to Buy from Strong Buy and target price to $24, or 10X our CY13 non-GAAP EPS estimate, from $28."

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

Shares of Microsemi Corporation closed at $18.62 yesterday.

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