Auriga Downgrades NetLogic (NETL) to Hold; Challenges Emerging in KBP and Multi-core Segments
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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 downgraded NetLogic (NASDAQ: NETL) from Buy to Hold. PT cut from $49 to $36.
Auriga analyst says, "We downgrade NETL to Hold and also reduce our price target as we see challenges emerging in the KBP and Multi-core segments, which leads us to scale back our growth estimates for the company. Conversations with industry experts suggest that leading KBP customers are adopting algorithmic techniques to reduce KBP usage in next generation products, which may partially offset the IPv6 migration tailwinds. We also see increased competitive challenges in the multi-core segment as NETL continues to lag behind Cavium (Nasdaq: CAVM)(Buy-rated) for new design wins. Even as Optichron remains a strong long-term growth driver for the company, we now expect four year top-line growth to slow down to ~15% due to our scaled back expectations for larger segments. As a result, we have also reduced our CY11/12 estimates."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $34.31 yesterday.
Auriga analyst says, "We downgrade NETL to Hold and also reduce our price target as we see challenges emerging in the KBP and Multi-core segments, which leads us to scale back our growth estimates for the company. Conversations with industry experts suggest that leading KBP customers are adopting algorithmic techniques to reduce KBP usage in next generation products, which may partially offset the IPv6 migration tailwinds. We also see increased competitive challenges in the multi-core segment as NETL continues to lag behind Cavium (Nasdaq: CAVM)(Buy-rated) for new design wins. Even as Optichron remains a strong long-term growth driver for the company, we now expect four year top-line growth to slow down to ~15% due to our scaled back expectations for larger segments. As a result, we have also reduced our CY11/12 estimates."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $34.31 yesterday.
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