Needham & Company Maintains a 'Buy' on Mindspeed Technologies (MSPD); Reducing Our Estimates Following Component Hoarding Post-Japan

Needham & Company maintains a 'Buy' on Mindspeed Technologies (NASDAQ: MSPD), PT lowered by $1 to $9.

Needham analyst says, "In coordination with our industry note, Summer Earnings Preview: Wait for the Event, Then Buy the News, we are reducing our forward estimates for MSPD. As Mindspeed guided for 9% Q/Q growth in C2Q11, among the fastest Q/Q growth rates in our coverage universe, we believe some of this growth may reflect inventory hoarding by Chinese OEMs and other HPA customers following the Japanese earthquake. Accordingly, we are slightly reducing our C2H11 and 2012 estimates as we expect order patterns may be lumpy in the near term. Based on the market reaction to soft C3Q11 guidance to this point, we would be cautious ahead of the company’s earnings announcement on 7/25 and encourage investors to accumulate shares following this date." (FY12 EPS estimate cut from $0.55 to $0.50 and FY12 revenues from $190.0 to $186.0)

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

Shares of Mindspeed Technologies closed at $7.23 yesterday.

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