Auriga Maintains a 'Hold' on Altera (ALTR); Surprisingly Weak Guidance is Likely the Bottom

Auriga maintains a 'Hold' on Altera (NASDAQ: ALTR) price target raised from $36 to $38.

Auriga analyst said, "We maintain our rating but increase price target for Altera, as the company reported a surprisingly weak guidance which fell well short of competitors Xilinx (Nasdaq: XLNX)(Buy) and other analog peers. A sharp decline in the volatile defense sector was cited as one of the reasons for the weak guidance, but other segments including wireless are also projected to be flat/down. ALTR called 1Q12 a bottom and expects revenue to grow in 2Q12. We agree with the company's assessment and are modeling a sharp uptick in future quarters. We raise our CY12/13 estimates slightly, but see the valuation as stretched at current levels. Despite management's claim about 2/3 market share for new design wins at 28nm, we stand by our assertion that XLNX is ahead both on technology and design win momentum. We will remain on the sidelines and wait for a better entry point."

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

Shares of Altera closed at $40.12 yesterday.

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