Avoid Semis, Says Goldman Sachs (XLNX)
Get Alerts XLNX Hot Sheet
Rating Summary:
8 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Goldman Sachs maintained a Neutral rating on Xilinx (NASDAQ: XLNX) and cut its price target to $45.00 (from $49.00). Analyst James Covello thinks investors should avoid semi stocks.
"Xilinx’s weak guidance reinforces our view that there is limited visibility into communications infrastructure trends in 2H (recall this drove our downgrade of the stock to Neutral in June), and we continue to recommend investors avoid the semi group at current valuations," said Covello.
"Xilinx attributed disappointing near-term fundamentals in wireless to 1) an inventory correction at comms OEM customers, we believe in part due to shortages in RF components causing volatility in the supply chain; 2) a one-quarter push out in Phase 3 deployments at China Mobile. We believe these dynamics will likely impact semi companies with comms exposure through 2H and fundamentals may be volatile over several quarters. We adjust our estimates on lower sales but higher margins: FY2015/2016/2017 EPS to $2.45/$2.75/$3.05 from $2.50/$2.75/$3.10," he added.
For an analyst ratings summary and ratings history on Xilinx click here. For more ratings news on Xilinx click here.
Shares of Xilinx closed at $48.15 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Downgrades Dassault Systemes SE (DSY:FP) (DASTY) to Neutral
- Andritz AG (ANDR:AV) (ADRZY) PT Lowered to EUR78 at JPMorgan
- WPP Plc (WPP:LN) (WPP) PT Raised to GBP9 at JPMorgan
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Goldman SachsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!