DA Davidson Upgrades TriQuint Semiconductor (TQNT) to Buy; Should Navigate A Rough Storm Ok; Valuation Too Cheap to Ignore

DA Davidson upgraded TriQuint Semiconductor (NASDAQ: TQNT) to Buy with a price target of $8.00.

DA analyst says, "While we are aware that the near-term lacks catalysts for upside, we believe this valuation (0.7x sales) is near trough levels seen in late-2008. We would argue that the company is financially and operationally more sound now than in 2008, when the company had operating losses."

"The company should start seeing improvement in 2H’12 with a strong reference design win with Qualcomm (Nasdaq: QCOM)(BUY) for the company’s new MMPA solution. We believe this should translate into revenue beginning in Q2’12. The company has stated that it will fill capacity through being aggressive on price for low-end PAs for the GSM market. Lastly, our estimates are conservative. For 2012 we are modeling 1.3% year-over-year growth in the company’s handset business and 4.9% year-over-year growth in defense, with networking declining 6.4%."

For an analyst ratings summary and ratings history on TriQuint Semiconductor click here. For more ratings news on TriQuint Semiconductor click here.

Shares of TriQuint Semiconductor closed at $4.03 yesterday.

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