Auriga Downgrades Xilinx (XLNX) to Hold; 28nm Promising, But Near-Term Remains Challenging

Auriga downgraded Xilinx (NASDAQ: XLNX) to Hold, price target cut $1 to $34.

Auriga analyst says, "We expect near-term growth challenges to continue due to weak macro trends, inventory correction, lower exposure to fast growing China and market share losses to Altera (Nasdaq: ALTR)(Buy). We continue to remain optimistic that XLNX will stabilize and potentially regain market share with 28nm products, but view the stock as fairly valued at current levels. XLNX's reduction of 2FQ12 guidance to (7%)-(10%) QoQ vs. prior (3%)-1% does not come as a surprise after similar cuts from other PLD vendors. While we had already reduced our estimates and price target last week anticipating this event, we bring them down further as we do not expect a sharp snapback."

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

Shares of Xilinx closed at $31.45 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Lake Street Capital Markets Downgrades DermTech Inc. (DMTK) to Hold
• HSBC Downgrades Harmony Gold Mining (HAR:SJ) (HMY) to Reduce