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Auriga Starts EZchip Semiconductor (EZCH) at Buy

December 6, 2010 6:47 AM EST
EZCH Hot Sheet
Rating Summary:
    4 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Auriga initiates coverage on EZchip Semiconductor (NASDAQ: EZCH) with a Buy rating and $35 price target.

The firm states, "We view EZCH as a secular growth story with the potential to triple revenue in the next five years, based on the strength of its design wins at top tier communications equipment vendors. EZCH dominates the high-end network processor (NPU) segment, used in the carrier Ethernet switch and router segment (CESR), with customer ASICs the only meaningful competition. Inventory build at Cisco (CSCO, NR) keeps us somewhat cautious near-term, but our analysis shows that EZCH is well-positioned to benefit from the ASR 9000 ramp."

For more ratings news on EZchip Semiconductor click here and for the rating history of EZchip Semiconductor click here.

Shares of EZchip Semiconductor closed at $27.83 yesterday, with a 52 week range of $10.55-$26.61.


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