Needham & Company Maintains a 'Buy' on Standard Microsystems (SMSC); Lowered Guide Might Prompt a Much Needed Lift in Sentiment

Needham & Company maintains a 'Buy' on Standard Microsystems (NASDAQ: SMSC) price target lowered from $31 to $29.

Needham analyst says, "SMSC reported in line results for AugQ2 but guided NovQ3 revenue to be down between 2% to 7% Q/Q in what is normally the
seasonally strongest quarter. Highlights include continued strength in Automotive and the rapid growth rate in BridgeCo, the recently acquired wireless audio technology. This was offset by Computing (32% of Q3 revenue) and Industrial (16%); both segments are poster children for macro weakness and are expected to decline further in NovQ3, with Industrial being the weaker of the two. This negative guide is not surprising but we still believe that the FY13 consensus EPS is too high and will have to be lowered. We reduced our FY12 revenue/EPS estimates from $447M/$1.65 to $432M/$1.50, and FY13 estimates from $482M/$1.95 to $462M/$1.90. Had we not started to model a lower tax rate, our FY13 EPS would have been $0.15 lower than our $1.90 estimate."

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

Shares of Standard Microsystems closed at $20.52 yesterday.

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