Needham & Company Maintains a 'Buy' on Magma Design (LAVA); Reports 2QF12 Results; See Most Likely Scenario as Deal Closure at Current Offer Price
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Price: $7.34 --0%
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Magma Design (NASDAQ: LAVA) price target of $7.50.
Needham analyst says, "LAVA shares now trade at a ~3% discount to the offer price with likely 5-6 months expected to close—and some likely manageable but not immaterial regulatory risk (as evidenced by a $30MM reverse break up fee). As such, aside from risk/arb trades, we think the shares should only be bought if one believes there is a reasonable probability of a competing bid. While we see this as unlikely based on factors discussed below, we maintain our Buy for now with a downward bias (w/unchanged $7.50 PT, equal to ~15x F13 NG EPS) as we await filing of the company’s proxy, which may alter our conviction in the likelihood of a competing bid."
Needham raises FY12 EPS estimate from $0.38 to $0.41.
For an analyst ratings summary and ratings history on Magma Design click here. For more ratings news on Magma Design click here.
Shares of Magma Design closed at $7.19 yesterday.
Needham analyst says, "LAVA shares now trade at a ~3% discount to the offer price with likely 5-6 months expected to close—and some likely manageable but not immaterial regulatory risk (as evidenced by a $30MM reverse break up fee). As such, aside from risk/arb trades, we think the shares should only be bought if one believes there is a reasonable probability of a competing bid. While we see this as unlikely based on factors discussed below, we maintain our Buy for now with a downward bias (w/unchanged $7.50 PT, equal to ~15x F13 NG EPS) as we await filing of the company’s proxy, which may alter our conviction in the likelihood of a competing bid."
Needham raises FY12 EPS estimate from $0.38 to $0.41.
For an analyst ratings summary and ratings history on Magma Design click here. For more ratings news on Magma Design click here.
Shares of Magma Design closed at $7.19 yesterday.
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