Auriga Maintains a 'Buy' on Xilinx (XLNX); Near-Term Risk; 28nm to Drive Long-Term Growth

Auriga maintains a 'Buy' on Xilinx (NASDAQ: XLNX), price target lowered from $39 to $35.

Auriga analyst says, "We reduce our estimates and price target, but maintain our Buy Rating for Xilinx due to macro-economic uncertainties, possibility of an inventory correction and weaker guide from industry peers. While we see downward risk to the company's near-term estimates, our analysis continues to show that XLNX's 28nm product family is well positioned to stabilize market share, which should lead to superior top-line growth and higher gross margins from CY13 onwards. Our analysis also shows that macro-economic uncertainties could hasten the market share gains from ASIC/ASSP as customers and weaker chip vendors reduce investments."

"Our FY12 estimate goes to $2.44bln/$2.15 from $2.49bln/$2.25 (consensus at $2.47bln/$2.12). FY13 goes to $2.59bln/$2.40 from $2.69bln/$2.62 (consensus at $2.64bln/$2.44)."

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

Shares of Xilinx closed at $30.01 yesterday.

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