Canaccord Genuity Maintains a 'Buy' on Cogo Group (COGO); Q3/11 Results: Strong Sales but Lower Margins and Limited Visibility
Tweet
Share
E-mailGet Alerts COGO Hot Sheet
Price: $2.39 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
Join SI Premium – FREE
Canaccord Genuity maintains a 'Buy' on Cogo Group (NASDAQ: COGO) price target lowered from $6.00 to $4.00.
Canaccord analyst, T. Michael Walkley, said, "Due to an expected weaker mix of SME customers and increasing mix of tier-1 customers, Cogo continues to anticipate a multi-quarter drop in its margin structure. This adverse mix shift was also exacerbated by a strong ramp in its lower margin Telecom business, up over 100% Y/Y. In addition, Cogo management indicated they have limited visibility into Q4/11 and 2012 sales, and did not issue Q4/11 sales or EPS guidance. Due to this lack of visibility and our conservative margin assumptions, we have lowered our 2012 estimates and price target. However, based on current valuation, we maintain our rating."
For an analyst ratings summary and ratings history on Cogo Group click here. For more ratings news on Cogo Group click here.
Shares of Cogo Group closed at $2.17 yesterday.
Canaccord analyst, T. Michael Walkley, said, "Due to an expected weaker mix of SME customers and increasing mix of tier-1 customers, Cogo continues to anticipate a multi-quarter drop in its margin structure. This adverse mix shift was also exacerbated by a strong ramp in its lower margin Telecom business, up over 100% Y/Y. In addition, Cogo management indicated they have limited visibility into Q4/11 and 2012 sales, and did not issue Q4/11 sales or EPS guidance. Due to this lack of visibility and our conservative margin assumptions, we have lowered our 2012 estimates and price target. However, based on current valuation, we maintain our rating."
For an analyst ratings summary and ratings history on Cogo Group click here. For more ratings news on Cogo Group click here.
Shares of Cogo Group closed at $2.17 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coinbase (COIN) PT Raised to $212 at Cantor Fitzgerald
- T. Rowe Price (TROW) PT Raised to $110 at TD Cowen
- AutoZone (AZO) PT Lowered to $3,500; TD Cowen: 'Strong Execution But Not Immune To Industry DIY Headwinds'
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
