Needham & Company Reiterates a 'Buy' on Monolithic Power Systems (MPWR); Preannouncement Not Nearly as Bad as Feared

Needham & Company reiterates a 'Buy' on Monolithic Power Systems (NASDAQ: MPWR) price target lowered from $19 to $16.

Needham analyst says, "MPWR preannounced its Q3 results last night, guiding revenue to the range of $52-$54M vs. its original guidance of $56-60M (a 3% up Q/Q guide vs. previous 12% up Q/Q). With several of its semi peers also guiding down for Q3, the news out of MPWR is not startling to say the least, especially in light of the skepticism that surrounded the positive outlook from the company at the close of Q2. We have highlighted MPWR shares as one of the obvious holdouts in the preannouncement camp and expect we might see a bounce now that the adjustment has been felt. MPWR continues to execute well considering the somber environment and its relatively smaller size as it transitions to higher margin products in the industrials and infrastructure area. We have lowered our 2011 estimates from $209M/$0.85 to $201M/$0.75 and our 2012 estimates from $237M/$1.15 to $217M/$0.90."

For more ratings news on Monolithic Power Systems click here and for the rating history of Monolithic Power Systems click here.

Shares of Monolithic Power Systems closed at $11.54 yesterday.

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