Auriga Maintains a 'Hold' on PMC-Sierra (PMCS); Raising Numbers on Opex Restraint & Stock Buyback
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Price: $11.65 --0%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
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Auriga maintains a 'Hold' on PMC-Sierra (NASDAQ: PMCS) price target raised from $6.50 to $8.
Auriga analyst said, "We maintain our Rating, but increase our price target as we reduce our opex estimates for 2012/13 following our management meeting. The lower opex and share count estimate leads us to significantly raise our EPS estimates. But we are trimming down our top-line estimates as we continue to be concerned that carrier spending may not bounce back strongly in 2H12. Overall, we are encouraged by management's commitment to opex restraint and stock buybacks and also see much lower headwinds from legacy segments. However, we are still concerned the company's exposure to slower growing fiber channel/optical transport segments and de-emphasis of the EPON client segment may lead to slow top-line growth of 6%-8% over the next five years. We stay on the sidelines for now and wait for signs of sustainable operating leverage before potentially becoming more positive on the stock."
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $7.04 yesterday.
Auriga analyst said, "We maintain our Rating, but increase our price target as we reduce our opex estimates for 2012/13 following our management meeting. The lower opex and share count estimate leads us to significantly raise our EPS estimates. But we are trimming down our top-line estimates as we continue to be concerned that carrier spending may not bounce back strongly in 2H12. Overall, we are encouraged by management's commitment to opex restraint and stock buybacks and also see much lower headwinds from legacy segments. However, we are still concerned the company's exposure to slower growing fiber channel/optical transport segments and de-emphasis of the EPON client segment may lead to slow top-line growth of 6%-8% over the next five years. We stay on the sidelines for now and wait for signs of sustainable operating leverage before potentially becoming more positive on the stock."
For an analyst ratings summary and ratings history on PMC-Sierra click here. For more ratings news on PMC-Sierra click here.
Shares of PMC-Sierra closed at $7.04 yesterday.
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