Imperial Capital Starts PMC-Sierra (PMCS) at Outperform

Imperial Capital initiates coverage on PMC-Sierra (NASDAQ: PMCS) with a Outperform rating and a price target of $10.00.

Analyst Ashok Kumar commented, "PMC-Sierra is a key supplier of high-speed broadband communications, storage semiconductors and processors for Enterprise, Access, Metro Optical Transport, Storage Area Networking, and Wireless network equipment. PMCS is the leading provider of enterprise storage silicon and we believe it is well positioned with a strong product cycle to monetize the end market growth, particularly in the Cloud Data Center. In the carrier segment, we believe PMCS should benefit from multiple Optical Transport Network (OTN) design wins that are expected to ramp in 2015. In the mobile market, global wireless infrastructure build out represents a growth opportunity for the company. Specific opportunities in this segment include backhaul in China and an integrated alternative to analog data convertor that sits in the radio head of wireless base stations. In aggregate, we estimate the company’s growth segments (storage, OTN, and mobile) could represent about three-quarters of revenues in 2015. For 4Q14, we expect revenues to be modestly better than consensus estimates of flat quarter-over- quarter (qoq), with strength in storage partially offset by Telecom. For 1Q15, seasonal declines in storage could compound the weak Telecom capex environment."

For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.

Shares of PMC-Sierra closed at $8.71 yesterday.

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