DA Davidson Maintains a 'Neutral' on Entropic (ENTR); Some Concerns are Alleviating; Relative Valuations Remain Depressed
Tweet
Share
E-mailGet Alerts ENTR Hot Sheet
Price: $15.31 --0%
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 7 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
DA Davidson maintains a 'Neutral' on Entropic (NASDAQ: ENTR) price target lowered from $7 to $5.
DA analyst says, "While Entropic didn’t specifically mention an inventory overhang on its Q2 earnings call, we got the sense that primarily at the satellite TV providers, inventory levels were high. We believe that at DirecTV (NYSE: DTV), specifically, the NFL lockout was having an impact to sub growth which may have led to slower orders for Entropic’s MoCA and CSS solutions. With that now behind us and with strong promotions such as free NFL Sunday Ticket for new subscribers, we believe orders should resume again in Q4."
"We still like the Entropic story but execution will be key - We believe Entropic can still generate strong cash flows and being one of two suppliers in a large and growing market should be a formidable position in the near-to-medium term. However, we would like to get more solid evidence of U.S. Cable MSOs moving to MoCA and Entropic’s competitive response to Broadcom’s recent announcement before getting more bullish on the name."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $4.34 yesterday.
DA analyst says, "While Entropic didn’t specifically mention an inventory overhang on its Q2 earnings call, we got the sense that primarily at the satellite TV providers, inventory levels were high. We believe that at DirecTV (NYSE: DTV), specifically, the NFL lockout was having an impact to sub growth which may have led to slower orders for Entropic’s MoCA and CSS solutions. With that now behind us and with strong promotions such as free NFL Sunday Ticket for new subscribers, we believe orders should resume again in Q4."
"We still like the Entropic story but execution will be key - We believe Entropic can still generate strong cash flows and being one of two suppliers in a large and growing market should be a formidable position in the near-to-medium term. However, we would like to get more solid evidence of U.S. Cable MSOs moving to MoCA and Entropic’s competitive response to Broadcom’s recent announcement before getting more bullish on the name."
For more ratings news on Entropic click here and for the rating history of Entropic click here.
Shares of Entropic closed at $4.34 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Downgrades JD Logistics Inc (2618:HK) (JDLGF) to Neutral
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Diana Shipping drops bid for Genco after price demands spike to $36.91
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
D.A. Davidson, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
