DA Davidson Downgrades NetLogic (NETL) to Neutral; A Fond Farewell; Great Deal for Both Companies
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Price: $26.72 --0%
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 8 | New: 7
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 8 | New: 7
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DA Davidson downgraded NetLogic (NASDAQ: NETL) to Neutral, price target raised by $2 to $50.
DA analyst says, "We believe this is a strong transaction for both companies. In our view, this is a significantly strong acquisition for Broadcom (Nasdaq: BRCM). It allows it quick time to market in its multicore processor segment, allows it to penetrate the basestation market through NetLogic’s acquisition of Optichron, and will help bolster gross margin especially as the Qualcomm (Nasdaq: QCOM)(BUY) royalties begin to subside. This transaction should also allow NetLogic to offer a much more complete solution and differentiate it from other processor suppliers such as Freescale (Nasdaq: FSL) and Cavium (Nasdaq: CAVM)(NEUTRAL). While we remain positive on NetLogic and this deal, we do not see another bidder or a higher takeout price."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $48.12 yesterday.
DA analyst says, "We believe this is a strong transaction for both companies. In our view, this is a significantly strong acquisition for Broadcom (Nasdaq: BRCM). It allows it quick time to market in its multicore processor segment, allows it to penetrate the basestation market through NetLogic’s acquisition of Optichron, and will help bolster gross margin especially as the Qualcomm (Nasdaq: QCOM)(BUY) royalties begin to subside. This transaction should also allow NetLogic to offer a much more complete solution and differentiate it from other processor suppliers such as Freescale (Nasdaq: FSL) and Cavium (Nasdaq: CAVM)(NEUTRAL). While we remain positive on NetLogic and this deal, we do not see another bidder or a higher takeout price."
For more ratings news on NetLogic click here and for the rating history of NetLogic click here.
Shares of NetLogic closed at $48.12 yesterday.
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