Needham & Company Maintains a 'Buy' on Intersil (ISIL); Solid Results; Guidance Better than Feared
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Price: $22.49 --0%
Rating Summary:
6 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
6 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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Needham & Company maintains a 'Buy' on Intersil (NASDAQ: ISIL), lowers PT from $17 to $15.
Needham analyst says, "ISIL reported Q2 results that modestly beat consensus and provided a Q3 guide that was below consensus but reflected a flat Q/Q growth rate. Given that its higher quality peers have provided more negative Q/Q guidance there is investor skepticism that ISIL’s guide is optimistic: disti days of inventory continue to increase, backlog is down 2% Q/Q while turns requirement for Q3 is 34% up from 31% in Q2. We don’t view ISIL through binary optics; one needs to account for these minor risks and accordingly we adjust for this in our depressed valuation on ISIL shares relative to the peer group. Highlights from the quarter centered on the continued success in Computing VCORE solutions with strong market share (70%) in the migration from Intel’s Sandy Bridge to Ivy Bridge platforms. Management has also maintained that the upstream impact from the Japan tragedy was nominal to ISIL. We adjusted our model to reflect more conservatism on revenue given the modest channel stretch and lowered our GM assumptions about 100bps per recent performance. We reduced our 2011 revenue/EPS estimates from $857M/$0.95 to $834M/$0.83 and our 2012 high revenue/EPS from $941M/$1.20 to $918M/$1.05."
For more ratings news on Intersil click here and for the rating history of Intersil click here.
Shares of Intersil closed at $12.11 yesterday.
Needham analyst says, "ISIL reported Q2 results that modestly beat consensus and provided a Q3 guide that was below consensus but reflected a flat Q/Q growth rate. Given that its higher quality peers have provided more negative Q/Q guidance there is investor skepticism that ISIL’s guide is optimistic: disti days of inventory continue to increase, backlog is down 2% Q/Q while turns requirement for Q3 is 34% up from 31% in Q2. We don’t view ISIL through binary optics; one needs to account for these minor risks and accordingly we adjust for this in our depressed valuation on ISIL shares relative to the peer group. Highlights from the quarter centered on the continued success in Computing VCORE solutions with strong market share (70%) in the migration from Intel’s Sandy Bridge to Ivy Bridge platforms. Management has also maintained that the upstream impact from the Japan tragedy was nominal to ISIL. We adjusted our model to reflect more conservatism on revenue given the modest channel stretch and lowered our GM assumptions about 100bps per recent performance. We reduced our 2011 revenue/EPS estimates from $857M/$0.95 to $834M/$0.83 and our 2012 high revenue/EPS from $941M/$1.20 to $918M/$1.05."
For more ratings news on Intersil click here and for the rating history of Intersil click here.
Shares of Intersil closed at $12.11 yesterday.
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