Needham & Company Maintains a 'Buy' on ARRIS Group (ARRS); Moxi Home Gateway Remains Key to ’12 Outperformance in a Sluggish Cap-ex Environment

Needham & Company maintains a 'Buy' on ARRIS Group (NASDAQ: ARRS) price target of $14.00.

Needham analyst says, "ARRIS continues to be a study in conflicting dynamics. Strong unit growth and improving margins in its CMTS business are being offset by brutal ASP erosion, while incremental revenue contribution from its new IP home gateway is exerting downward pressure on gross margins. While the precise trajectory of these conflicting forces is admittedly difficult to call, we think the net outcome should be solid top line growth and at least corresponding EPS growth off 2011 levels...2011 estimates trimmed to $1.09B/$0.81 from $1.10B/$0.82 and 2012 are unchanged at $1.19B/$0.89."

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

Shares of ARRIS Group closed at $10.92 yesterday.

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