Standpoint Research Upgrades Volterra Semiconductor (VLTR) to Buy
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Price: $22.97 --0%
Rating Summary:
7 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
Rating Summary:
7 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
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Standpoint Research upgraded Volterra Semiconductor (NASDAQ: VLTR) from Hold to Buy with a price target of $24.00, suggesting 28% upside.
Analyst Ronnie Moas comments, "Volterra shares have underperformed the S&P-500 by more than 3,000 bps since our downgrade in October 2011. In our recent report on 679 names from the Russell-2000 VLTR ranked # 59 out of 679 according to our 155-variable computer model … the stock also passes fundamental and subjective overlays. The shares are trading at a 52-week low nearly 50% off the 52-week high. There have been misses and warnings from VLTR but not out-of-line with others in the industry. This is a nice growth at a reasonable price name with good risk reward here at $19 and expectations for double-digit revenue and EPS growth in 2013 versus 2012. This is a name that you could have bought at $19 and sold at $26 three times in the last three years. We are betting that a fourth opportunity is presenting itself here. My main concern is that the market may come down and drag VLTR towards $16-$18 before we see $24. That being said … VLTR would probably not under-perform from here in a down market given the recent drop. Five year ROE is 15% … NPM is 20% … historical three-years and five-year EPS and revenue growth are all above 15%. P/S, EV/EBITDA and P/CF are a bit high … but the P/S can be disregarded because of the high NPM). The current P/E is 0.6X the historical multiple attached to VLTR EPS. Margins should improve driven by storage and servers and there should be market share gains as well in 2013. The second half of 2012 is expected to be slow and disappointing Q3 / Q4 earnings are already priced in at this time. Volterra reported Q2 on July 23 -- earnings of $0.32 per share, excluding non-recurring items, missed the consensus by $0.02 on revenues up 4.5% y/y to $43.6 mln versus the $44.4 mln consensus. VLTR, market cap $490 mln, is sitting on $140 mln in cash with no debt."
For an analyst ratings summary and ratings history on Volterra Semiconductor click here. For more ratings news on Volterra Semiconductor click here.
Shares of Volterra Semiconductor closed at $19.75 yesterday.
Analyst Ronnie Moas comments, "Volterra shares have underperformed the S&P-500 by more than 3,000 bps since our downgrade in October 2011. In our recent report on 679 names from the Russell-2000 VLTR ranked # 59 out of 679 according to our 155-variable computer model … the stock also passes fundamental and subjective overlays. The shares are trading at a 52-week low nearly 50% off the 52-week high. There have been misses and warnings from VLTR but not out-of-line with others in the industry. This is a nice growth at a reasonable price name with good risk reward here at $19 and expectations for double-digit revenue and EPS growth in 2013 versus 2012. This is a name that you could have bought at $19 and sold at $26 three times in the last three years. We are betting that a fourth opportunity is presenting itself here. My main concern is that the market may come down and drag VLTR towards $16-$18 before we see $24. That being said … VLTR would probably not under-perform from here in a down market given the recent drop. Five year ROE is 15% … NPM is 20% … historical three-years and five-year EPS and revenue growth are all above 15%. P/S, EV/EBITDA and P/CF are a bit high … but the P/S can be disregarded because of the high NPM). The current P/E is 0.6X the historical multiple attached to VLTR EPS. Margins should improve driven by storage and servers and there should be market share gains as well in 2013. The second half of 2012 is expected to be slow and disappointing Q3 / Q4 earnings are already priced in at this time. Volterra reported Q2 on July 23 -- earnings of $0.32 per share, excluding non-recurring items, missed the consensus by $0.02 on revenues up 4.5% y/y to $43.6 mln versus the $44.4 mln consensus. VLTR, market cap $490 mln, is sitting on $140 mln in cash with no debt."
For an analyst ratings summary and ratings history on Volterra Semiconductor click here. For more ratings news on Volterra Semiconductor click here.
Shares of Volterra Semiconductor closed at $19.75 yesterday.
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