Auriga Assumes Coverage and Upgrades Altera (ALTR) to Buy; Expecting Growth to Resume in 2H11
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Price: $111.85 --0%
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga assumes coverage and upgrades Altera (NASDAQ: ALTR) from Hold to Buy. PT increased from $44 to $51.
Auriga analyst says, "...we expect growth to resume in 2H11 after two quarters of inventory correction. We raise our above consensus estimates for 2H11 and 2012 as our analysis suggests that growth will be driven by market share gains and increased service provider/industrial spending worldwide. We also believe that the company is maintaining a tight leash on SG&A, even as it ramps R&D spending to introduce 28nm FPGAs and expand TAM through new initiatives. We expect ALTR to gain significant market share over the next 2-3 years based on design wins with 65nm/40nm products and then hold share with newer 28nm products."
"We tweak down our Q211 estimate to $538mln/$0.62 from $546mln/$0.64 (consensus at $536mln/$0.62) due to potential supply disruption in automotive and other industrial segments, but tweak up our CY11 estimate at $2.20bln/$2.58 from $2.20bln/$2.55 (consensus at $2.14bln/$2.47). We also raise our CY12 estimate to $2.44bln/$2.90 from $2.40bln/$2.74 (consensus at $2.35bln/$2.65), as we expect high gross margins, tight opex discipline, and strong revenue growth driven by share gains and growth in communications/industrial segment."
For more ratings news on Altera click here and for the rating history of Altera click here.
Shares of Altera closed at $41.69 yesterday.
Auriga analyst says, "...we expect growth to resume in 2H11 after two quarters of inventory correction. We raise our above consensus estimates for 2H11 and 2012 as our analysis suggests that growth will be driven by market share gains and increased service provider/industrial spending worldwide. We also believe that the company is maintaining a tight leash on SG&A, even as it ramps R&D spending to introduce 28nm FPGAs and expand TAM through new initiatives. We expect ALTR to gain significant market share over the next 2-3 years based on design wins with 65nm/40nm products and then hold share with newer 28nm products."
"We tweak down our Q211 estimate to $538mln/$0.62 from $546mln/$0.64 (consensus at $536mln/$0.62) due to potential supply disruption in automotive and other industrial segments, but tweak up our CY11 estimate at $2.20bln/$2.58 from $2.20bln/$2.55 (consensus at $2.14bln/$2.47). We also raise our CY12 estimate to $2.44bln/$2.90 from $2.40bln/$2.74 (consensus at $2.35bln/$2.65), as we expect high gross margins, tight opex discipline, and strong revenue growth driven by share gains and growth in communications/industrial segment."
For more ratings news on Altera click here and for the rating history of Altera click here.
Shares of Altera closed at $41.69 yesterday.
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