Auriga Maintains a 'Buy' on NetLogic (NETL); CSCO/China Driven Top-line Miss Offset by Higher Gross Margins
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Price: $26.60 -0.45%
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Buy' on NetLogic (NASDAQ: NETL), PT $49.
Auriga analyst says, "We maintain our rating and price target on NetLogic as top line print/guide (excluding Optichron) missed our/consensus estimates due to continued inventory rebalancing issues at Cisco (Nasdaq: CSCO)(Hold) and softness in China in 1Q11. Yet another gross margin upside led to an EPS beat, while bottom-line guidance is in-line with consensus estimates. Management expressed confidence that inventory issues at CSCO should be behind the company after 2Q11 and typical sequential growth of 3%-5% should then resume. As we had expected, IPv6 revenue impact timeline seems to have been pushed out to 1H12. We continue to believe that IPv6 related revenue will not be meaningful until 2013. After accounting for Optichron, our CY11/12 estimates move up marginally; although we have slightly reduced our KBP/multi-core estimates. We remain positive on the longer term growth prospects of the company as we expect IPv6, multi-core and Optichron to be significant growth drivers beyond 2012."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $43.28 yesterday.
Auriga analyst says, "We maintain our rating and price target on NetLogic as top line print/guide (excluding Optichron) missed our/consensus estimates due to continued inventory rebalancing issues at Cisco (Nasdaq: CSCO)(Hold) and softness in China in 1Q11. Yet another gross margin upside led to an EPS beat, while bottom-line guidance is in-line with consensus estimates. Management expressed confidence that inventory issues at CSCO should be behind the company after 2Q11 and typical sequential growth of 3%-5% should then resume. As we had expected, IPv6 revenue impact timeline seems to have been pushed out to 1H12. We continue to believe that IPv6 related revenue will not be meaningful until 2013. After accounting for Optichron, our CY11/12 estimates move up marginally; although we have slightly reduced our KBP/multi-core estimates. We remain positive on the longer term growth prospects of the company as we expect IPv6, multi-core and Optichron to be significant growth drivers beyond 2012."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $43.28 yesterday.
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