Piper Jaffray Upgrades Advanced Analogic Technologies (AATI) to Overweight

October 29, 2009 8:55 AM EDT

Piper Jaffray upgrades Advanced Analogic Technologies (Nasdaq: AATI) to Overweight. Price target is $5.25

Piper analyst says, "Due to high exposure to the cell phone market and Samsung in particular, AATI provided weak guidance for Q4. We do not believe that this came as a big surprise to the market given the sell off in the shares over the last 6 weeks...While AATI is likely a candidate for tax loss selling, we think it also makes an excellent candidate for the January effect...Given the illiquid nature of the shares, we believe between now and year-end is an excellent time to accumulate shates. In addition, the company has a share repurchase program in place that could add support to the shares at current levels...We are modeling flat revenue in 2010 which is below our up 15% semiconductor forecast for 2010. We believe that there are several potential sources of upside to our forecast. First, HTC is coming on as a customer as well as a second large Chinese cell phone maker. Second is continued growth in the company's switching regulator business that is seeing traction in DSL modems, set top boxes and 3G data cards. The third is the company's products for the LCD TV market, which we view as the company's biggest opportunity, but the most unlikely. Even with no contribution from these new customers and products, we believe that the camera flash, LED backlight and battery charger markets will at a minimum sustain revenue in CY10 and easily drive 5% to 10% revenue growth for the company next year."

To see more analyst ratings on AATI Click Here.

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