Needham & Company Maintains a 'Hold' on Hutchinson Technology (HTCH); Resume Focus On Profitability
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Price: $4.00 --0%
Rating Summary:
2 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Hutchinson Technology (NASDAQ: HTCH).
Analyst, Richard Kugele, said, "We applaud HTCH’s successful debt refinancing and the company’s targeted June restart of its once flooded Thai facility, with neither an easy task. However, on the negative side remain the pre-flood issues of underutilization, market share, and a return to profitability. As we continue to expect a slow recovery in these areas, we maintain our rating."
"Unfortunately, for HTCH to not only recover but also resume growth we likely need to see both an increase in ASP/mix and some level of share gains. Given no clear visibility into when profitability, let alone growth, returns, we maintain our rating. In terms of derivatives we see no meaningful datapoints for Seagate (NYSE: STX) or Western Digital (NYSE: WDC) as STX posted and WD will likely post materially higher growth." (Raises FY12 loss from (1.78) to (1.72), but lowers FY13 from (0.80) to (1.03).
For an analyst ratings summary and ratings history on Hutchinson Technology click here. For more ratings news on Hutchinson Technology click here.
Shares of Hutchinson Technology closed at $2.06 yesterday.
Analyst, Richard Kugele, said, "We applaud HTCH’s successful debt refinancing and the company’s targeted June restart of its once flooded Thai facility, with neither an easy task. However, on the negative side remain the pre-flood issues of underutilization, market share, and a return to profitability. As we continue to expect a slow recovery in these areas, we maintain our rating."
"Unfortunately, for HTCH to not only recover but also resume growth we likely need to see both an increase in ASP/mix and some level of share gains. Given no clear visibility into when profitability, let alone growth, returns, we maintain our rating. In terms of derivatives we see no meaningful datapoints for Seagate (NYSE: STX) or Western Digital (NYSE: WDC) as STX posted and WD will likely post materially higher growth." (Raises FY12 loss from (1.78) to (1.72), but lowers FY13 from (0.80) to (1.03).
For an analyst ratings summary and ratings history on Hutchinson Technology click here. For more ratings news on Hutchinson Technology click here.
Shares of Hutchinson Technology closed at $2.06 yesterday.
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