Needham & Company Maintains a 'Buy' on MaxLinear (MXL); Reducing Our Estimates to Reflect Near Term Choppiness in the Japanese Consumer Market

Needham & Company maintains a 'Buy' on MaxLinear (NYSE: MXL), PT lowered from $13 to $11.

Needham analyst says, "In coordination with our industry note, Summer Earnings Preview: Wait for the Event, Then Buy the News, we are lowering our out-quarter estimates on MXL to reflect expected weakness in the company’s consumer businesses including European digital terrestrial set top boxes sold through retail chains and Japanese automobiles where we believe the earthquake may have a prolonged impact on the Japanese consumer. Though our aggregate estimates have been reduced, our cable estimates remain unchanged to slightly higher depending on the quarter to reflect continued momentum in this business. We believe the MXL long term story remains on track and are encouraged by the cable ramp and the recent acquisition of MoCA IP to expand the company’s TAM...Because we are slightly lowering our revenue expectations, we would encourage investors to wait until after the company’s 7/28 earnings announcement before accumulating shares or adding to positions." (FY11 EPS estimate lowered from $0.02 to (0.03) and FY12 from $0.50 to $0.35))

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

Shares of MaxLinear closed at $7.62 yesterday.

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