Jefferies Maintains a 'Hold' on EZchip Semiconductor (EZCH); Upside Potential in Wireline Infrastructure

Jefferies maintains a 'Hold' on EZchip Semiconductor (NASDAQ: EZCH), price target cut $2 to $37.

Jefferies analyst says, "With exposure to multiyear secular upgrade cycles in wireline communications infrastructure, we continue to believe EZCH is well positioned to deliver ~20-30% annual earnings growth through 2013. EZCH stock is up ~20% YTD (vs. 8% decline in the SOX), suggesting positive fundamentals are baked in. We could become more constructive with visibility into wireline CapEx, or share gains."

"Our $37 PT assumes a P/E of 27x applied to our 2012 EPS estimate of $1.39, which we lowered from $1.50 to account for risk of a softer capital spending environment in wireline infrastructure."

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

Shares of EZchip Semiconductor closed at $33.89 yesterday.

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