Jefferies Cuts PT on Inphi (IPHI) Following Investors Meetings; Still Bullish, Lacking Visibility
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Price: $172.27 --0%
Rating Summary:
14 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies cut its price target on Inphi Corp. (Nasdaq: IPHI) about 17.4 percent, from $23 to $19, following recent investor meetings. The firm maintains a Buy rating on the stock.
Checks indicate that Inphi's "Cloud/Data Center product cycle in Intel's Romley server intact, after a one quarter delay." Specifically, Jefferies notes, "Intel (Nasdaq: INTC) is planning to start Romley production in September, with volume shipments starting in November. As Inphi's LR-DIMM ramps for Romley, we expect Inphi's memory buffer revenues and ASPs to inflect, driving a gross margin tailwind."
Further growth should continue in Data/Video transfer following a third-quarter transition at Huawei. Jefferies comments, "Huawei is moving more aggressively to Inphi's 40G solution (coherent), after burning inventory of older 40G parts (non-coherent) in Q3. Separately we expect Inphi to ship pre-production samples of its next-generation 100GE components in 4Q11 to Cisco (Nasdaq: CSCO)."
The price target reduction is due to lower visibility in a "difficult macroeconomic environment." Jefferies sees, "negative sentiment on the stock to reverse over the next 6-to12 months as QoQ revenue growth resumes starting in 4Q11."
Inphi is up about 8 percent on the session.
Click here for more analyst color. For more ratings changes on Inphi, click here.
Checks indicate that Inphi's "Cloud/Data Center product cycle in Intel's Romley server intact, after a one quarter delay." Specifically, Jefferies notes, "Intel (Nasdaq: INTC) is planning to start Romley production in September, with volume shipments starting in November. As Inphi's LR-DIMM ramps for Romley, we expect Inphi's memory buffer revenues and ASPs to inflect, driving a gross margin tailwind."
Further growth should continue in Data/Video transfer following a third-quarter transition at Huawei. Jefferies comments, "Huawei is moving more aggressively to Inphi's 40G solution (coherent), after burning inventory of older 40G parts (non-coherent) in Q3. Separately we expect Inphi to ship pre-production samples of its next-generation 100GE components in 4Q11 to Cisco (Nasdaq: CSCO)."
The price target reduction is due to lower visibility in a "difficult macroeconomic environment." Jefferies sees, "negative sentiment on the stock to reverse over the next 6-to12 months as QoQ revenue growth resumes starting in 4Q11."
Inphi is up about 8 percent on the session.
Click here for more analyst color. For more ratings changes on Inphi, click here.
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