Benchmark Cuts Price Target on MIPS Technologies (MIPS), Provides Outlook into Q4 & 2012
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Price: $7.98 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark is maintaining its Buy rating on shares of MIPS Technologies (NASDAQ: MIPS), but is lowering its price target from $15 to $11 ahead of its fourth quarter conference call, which is expected to be on August 4 after the close.
The firm believes that investors have become too pessimistic on the company and feel that right now is a great time to buy. They also believe that MIPS will release its Q4 results inline with expectations, but forecasts that royalty revenues will be down 8 percent to 12 percent due to market trends.
Benchmark anticipates that MIPS will issue its Q1 2012 guidance with a license revenue range of $7 million to $9 million.
An analyst at the firm comments, "Two non-operating items could create a positive contribution to FY12 and FY13 consensus non-GAAP EPS estimates. First, with the share price down, it is likely consensus EPS estimates are considering too many fully diluted shares. This factor could lead to a few pennies of EPS upside. Second, while the company’s GAAP tax rate will likely rise to 35 percent during FY12, the company’s non-GAAP tax rate should fall to 15percent."
The firms Q4 and 2011 EPS estimates are $0.07 and $0.48 while its 2012 estimate is $0.47. Its revenue estimates for Q4 and 2011 are $20 million and $84.4 million, well below its 2012 estimate of $92.5 million.
For more ratings news on MIPS Technologies click here and for the rating history of MIPS Technologies click here.
Shares of MIPS Technologies closed at $7.24 yesterday.
The firm believes that investors have become too pessimistic on the company and feel that right now is a great time to buy. They also believe that MIPS will release its Q4 results inline with expectations, but forecasts that royalty revenues will be down 8 percent to 12 percent due to market trends.
Benchmark anticipates that MIPS will issue its Q1 2012 guidance with a license revenue range of $7 million to $9 million.
An analyst at the firm comments, "Two non-operating items could create a positive contribution to FY12 and FY13 consensus non-GAAP EPS estimates. First, with the share price down, it is likely consensus EPS estimates are considering too many fully diluted shares. This factor could lead to a few pennies of EPS upside. Second, while the company’s GAAP tax rate will likely rise to 35 percent during FY12, the company’s non-GAAP tax rate should fall to 15percent."
The firms Q4 and 2011 EPS estimates are $0.07 and $0.48 while its 2012 estimate is $0.47. Its revenue estimates for Q4 and 2011 are $20 million and $84.4 million, well below its 2012 estimate of $92.5 million.
For more ratings news on MIPS Technologies click here and for the rating history of MIPS Technologies click here.
Shares of MIPS Technologies closed at $7.24 yesterday.
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