Piper Jaffray Assumes Atheros (ATHR) with a Neutral

June 20, 2008 7:41 AM EDT

Piper Jaffray assumes coverage on Atheros (NASDAQ: ATHR) with a Neutral rating and increases their price target from $27 to $34.

The firm said, "The shares have recently had a strong run as the company has come off the loss of Apple's notebook business and the market anticipates the ramp of a game console win that will occur in the second half. We are looking for a pull back in the shares to become more constructive. We believe that ATHR is tracking to meet our consensus estimates of $0.30 on $120.8 million for Q2. However, we think there is upside to consensus in the 2H08 driven by the adoption of 802.11n and the ramp of a game console win."

The firm also raises their 2008 EPS estimates from $1.27 to $1.35 and 2009 estimates from $1.41 to $1.53 based on the belief that "the prior model did not fully reflect the strong product cycle that should drive growth in 2H08."

Atheros Communications, Inc. develops integrated semiconductor system solutions for communication integrated circuit products.

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