Kaufman Raises Price Target on ARRIS Group (ARRS) Following Market Checks
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Price: $31.66 --0%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Kaufman Bros. is maintaining its Buy rating on shares of ARRIS Group (NASDAQ: ARRS) and is raising its price target from $12 to $13.
The firm is raising its Q4 sales estimate from $279.9 million to $282.6 million as market checks indicate stronger than expected start for Arris' Moxi family of IP gateway products. Kaufman is forecasting management will announces additional customers by the end of the next quarter and as a result is increasing its FY12 earnings and sales estimates from $0.91 per share and $1.179 billion to $0.98 and $1.199 billion.
For FY13, Kaufman is introducing its earnings and sales estimates at $1.05 per share and $1.307 billion.
An analyst at Kaufman comments, "We believe that Arris currently holds an early first mover advantage in the home gateway market, which will likely be challenged by Samsung, Cisco (Nasdaq: CSCO), and Pace who are in various stages of formulating their own product roadmaps, while Motorola Mobility (NYSE: MMI) remains a wildcard. As competition intensifies, we believe that margins will most likely come under pressure. However, we believe that the longer Arris can cling onto its first mover advantage and the less fluid the competitive playing field, then the more sticky margins will be going forward. At a minimum, we do not expect an all out CPE margin compression to occur in 2012."
For an analyst ratings summary and ratings history on ARRIS Group click here. For more ratings news on ARRIS Group click here.
Shares of ARRIS Group closed at $10.80 yesterday.
The firm is raising its Q4 sales estimate from $279.9 million to $282.6 million as market checks indicate stronger than expected start for Arris' Moxi family of IP gateway products. Kaufman is forecasting management will announces additional customers by the end of the next quarter and as a result is increasing its FY12 earnings and sales estimates from $0.91 per share and $1.179 billion to $0.98 and $1.199 billion.
For FY13, Kaufman is introducing its earnings and sales estimates at $1.05 per share and $1.307 billion.
An analyst at Kaufman comments, "We believe that Arris currently holds an early first mover advantage in the home gateway market, which will likely be challenged by Samsung, Cisco (Nasdaq: CSCO), and Pace who are in various stages of formulating their own product roadmaps, while Motorola Mobility (NYSE: MMI) remains a wildcard. As competition intensifies, we believe that margins will most likely come under pressure. However, we believe that the longer Arris can cling onto its first mover advantage and the less fluid the competitive playing field, then the more sticky margins will be going forward. At a minimum, we do not expect an all out CPE margin compression to occur in 2012."
For an analyst ratings summary and ratings history on ARRIS Group click here. For more ratings news on ARRIS Group click here.
Shares of ARRIS Group closed at $10.80 yesterday.
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