Auriga Maintains a 'Buy' on EZchip Semiconductor (EZCH); JNPR MX Sales Positive, but NP-4 Ramp Likely Delayed

Auriga maintains a 'Buy' on EZchip Semiconductor (NASDAQ: EZCH), lowers PT from $38 to $36.

Auriga analyst says, "Our analysis suggests that EZCH is well positioned to grow in CY12, as multiple customers go into production with NP-4 and particularly as lead customer Cisco's (Nasdaq: CSCO)(Hold) ASR9000 starts to ramp meaningfully. For the near term, we think that Juniper's (Nasdaq: JNPR)(Buy) MX sales level for 1Q11 could lead to potential upside to our CY11 numbers as MX sales did not decline as much as we had feared. We raise our CY11 numbers, but reduce our CY12 estimates as our checks are suggesting that NP-4 will most likely go into production in 4Q11 and we now do not expect the NP-4c based ASR9000 line-card to go into production before 1Q12. In our view, longer term prospects remain quite positive as our checks suggest that service provider secular trends are healthy and also as multiple tier1 customers including CSCO have already signed on to use the next generation NP-5 platform, which bodes well for the long term future of the company."

For more ratings news on EZchip Semiconductor click here and for the rating history of EZchip Semiconductor click here.

Shares of EZchip Semiconductor closed at $30.54 yesterday.

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