March Quarter Could be Bottom for Cypress Semi (CY) - RBC
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Price: $23.82 --0%
Rating Summary:
10 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
Rating Summary:
10 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
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RBC Capital's Doug Freedman cut his price target on Cypress Semi (NASDAQ: CY) from $15 to $13 but kept an Outperform rating following today's negative Q4 pre-announcement.
The analyst notes sales were particularly soft during the final 2-weeks of December where sales waned at distributors across all geographies as supply exceeded expected demand levels. In addition, sales declines are expected to be steeper than expected across all CY segments.
Today's 9% sell-off could provide a buying opportunity, he said. "While estimates are resetting, MarQ likely represents the bottom in revenues and bookings as inventory levels across the supply chain are burned through. We suspect that Q4 earnings should represent the final cut to CY estimates in the current cycle, thus creating an attractive buying opportunity ahead of more material growth drivers (particularly outside of touch)."
For DecQ, the firm cut estimate to $178.7mil/$0.04 from prior $192.9mil/$0.14 and Street $193.5mil/$0.14. For MarQ, they revise to $178.7mil/$0.05 from prior $190.9mil/$0.10 and Street $191.1mil/$0.13. For FY13, they also reduce estimates to $802.3mil/$0.67 from prior $848.9mil/$0.84 and Street $855mil/$0.86.
For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.
Shares of Cypress Semi closed at $11.05 yesterday.
The analyst notes sales were particularly soft during the final 2-weeks of December where sales waned at distributors across all geographies as supply exceeded expected demand levels. In addition, sales declines are expected to be steeper than expected across all CY segments.
Today's 9% sell-off could provide a buying opportunity, he said. "While estimates are resetting, MarQ likely represents the bottom in revenues and bookings as inventory levels across the supply chain are burned through. We suspect that Q4 earnings should represent the final cut to CY estimates in the current cycle, thus creating an attractive buying opportunity ahead of more material growth drivers (particularly outside of touch)."
For DecQ, the firm cut estimate to $178.7mil/$0.04 from prior $192.9mil/$0.14 and Street $193.5mil/$0.14. For MarQ, they revise to $178.7mil/$0.05 from prior $190.9mil/$0.10 and Street $191.1mil/$0.13. For FY13, they also reduce estimates to $802.3mil/$0.67 from prior $848.9mil/$0.84 and Street $855mil/$0.86.
For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.
Shares of Cypress Semi closed at $11.05 yesterday.
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