Broadpoint.AmTech upgrades Atheros Communications (ATHR) to Buy

June 18, 2009 11:07 AM EDT

Broadpoint.AmTech upgrades Atheros Communications (Nasdaq: ATHR) to Buy. Price target $24.

Broadpoint analyst says, "We are upgrading WiFi leader ATHR to Buy from Neutral. Key points include: Solid play on WiFi recovery: With the worst of the PC/CE inventory burn behind, we see ATHR as a good play on the continued ramp of netbooks and the Nintendo DSi in 2H09. We are particularly encouraged by ATHR's recent win with Linksys for the high-volume WRT54G Access Point, which should ramp in Q3. Better share of netbooks: We believe ATHR share in netbooks is over 60% with solid slots at leaders Asustech and Acer, and potential wins pending at HPQ. This compares with an estimated 50/25/25 split in notebook WiFi between INTC/BRCM/ATHR. ATHR content is also in-line to slightly higher as the netbook slots include ethernet. Thus, ATHR should benefit from a mix shift from notebooks to netbooks. Linksys win adds revenue and visibility: Linksys was one of the bigger "holes" for ATHR which now appears filled. We estimate ~$5 content and 1.5mil units/quarter opportunity to begin ramping in the WRT54G in September....Raising our CY10 EPS from $0.75 to $0.85 on better visibility and margins."

Atheros Communications, Inc. (Atheros) is engaged in providing technologies for the wireless and wired communications products that are used by a broad base of customers, including manufacturers of personal computers (PCs), networking equipment and consumer electronics devices.

To see more analyst ratings on ATHR Click Here.

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• American Technology Research

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?