UBS Maintains a 'Buy' on Cypress Semi (CY); Lower Estimates, PT on Slower Macro
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Price: $23.82 --0%
Rating Summary:
10 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Cypress Semi (NASDAQ: CY) price target cut from $26 to $22.
UBS analyst says, "On expectations the slowing macro will result in both OEM inventory destocking pre-empting a downturn as well as slowing end demand, we lower estimates and PT. Likely to have particular impact to Cypress are: 1) the slow consumer/computing sectors, which are likely to show muted 2H seasonality, 2) the loss of the HP (NYSE: HPQ) WebOS device business to hit from 4Q ($5m+/qtr), 3) some delays in wireless infrastructure spend. We maintain Buy, as we expect solid +12% 2012 growth and believe its Nov analyst meeting could be a catalyst as it updates touch design wins and discloses a new business that could be material to valuation."
"For 3Q, we lower our sales/non-GAAP EPS estimate by 3%/6% to $264.9m/$0.34 and for 2011, we lower estimates by 4%/8% to $1,006m/$1.20. For 2012/13, we lower sales 10%/8% to $1,132m/$1,305m and pf EPS by 16%/11% to $1.47/$1.74."
For more ratings news on Cypress Semi click here and for the rating history of Cypress Semi click here.
Shares of Cypress Semi closed at $15.90 yesterday.
UBS analyst says, "On expectations the slowing macro will result in both OEM inventory destocking pre-empting a downturn as well as slowing end demand, we lower estimates and PT. Likely to have particular impact to Cypress are: 1) the slow consumer/computing sectors, which are likely to show muted 2H seasonality, 2) the loss of the HP (NYSE: HPQ) WebOS device business to hit from 4Q ($5m+/qtr), 3) some delays in wireless infrastructure spend. We maintain Buy, as we expect solid +12% 2012 growth and believe its Nov analyst meeting could be a catalyst as it updates touch design wins and discloses a new business that could be material to valuation."
"For 3Q, we lower our sales/non-GAAP EPS estimate by 3%/6% to $264.9m/$0.34 and for 2011, we lower estimates by 4%/8% to $1,006m/$1.20. For 2012/13, we lower sales 10%/8% to $1,132m/$1,305m and pf EPS by 16%/11% to $1.47/$1.74."
For more ratings news on Cypress Semi click here and for the rating history of Cypress Semi click here.
Shares of Cypress Semi closed at $15.90 yesterday.
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