Barclays Maintains an 'Overweight' on Entropic (ENTR); Quarter Broadly Inline, Guidance Lower
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Price: $15.31 --0%
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Entropic (NASDAQ: ENTR), PT lowered by $1 to $13.
Barclays analyst says, "Post close, MoCA leader ENTR announced March results that were broadly inline but provided weaker guidance for June QoQ and Vs Consensus. The lower 2Q guidance , which has been widely previewed, is a reflection of share loss to Broadcom at DIRECTV and at Motorola (Comcast) as well as seasonal softness in its satellite business. While we acknowledge MoCA may become an increasingly competitive market, we believe much of the CY11 share loss is now behind them and believe Entropic will return to growth as several tailwinds (Cisco (Nasdaq: CSCO) / SFA upgrade, DIRECTV (NYSE: DTV) seasonality, MoCA 2.0, etc) start to kick in for 2H:11 and 2012."
"Our CY11 EPS moves to $0.77 from $0.86 with CY12 at $0.71 on higher 20% tax and slower revenue growth. We model CY11 sales of $275.4M +31% YoY assuming 25% of MOCA market moves to BRCM, with CY12 sales of $304.9M +11% YoY. With 3Q seasonally stronger for satellites, 2H11 CSCO SFA upgrade for 30% of Comcast and potential VZ MoCA 2.0 refresh as potential catalysts, we maintain our rating."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $8.46 yesterday.
Barclays analyst says, "Post close, MoCA leader ENTR announced March results that were broadly inline but provided weaker guidance for June QoQ and Vs Consensus. The lower 2Q guidance , which has been widely previewed, is a reflection of share loss to Broadcom at DIRECTV and at Motorola (Comcast) as well as seasonal softness in its satellite business. While we acknowledge MoCA may become an increasingly competitive market, we believe much of the CY11 share loss is now behind them and believe Entropic will return to growth as several tailwinds (Cisco (Nasdaq: CSCO) / SFA upgrade, DIRECTV (NYSE: DTV) seasonality, MoCA 2.0, etc) start to kick in for 2H:11 and 2012."
"Our CY11 EPS moves to $0.77 from $0.86 with CY12 at $0.71 on higher 20% tax and slower revenue growth. We model CY11 sales of $275.4M +31% YoY assuming 25% of MOCA market moves to BRCM, with CY12 sales of $304.9M +11% YoY. With 3Q seasonally stronger for satellites, 2H11 CSCO SFA upgrade for 30% of Comcast and potential VZ MoCA 2.0 refresh as potential catalysts, we maintain our rating."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $8.46 yesterday.
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