Chardan Capital Markets Downgrades EZchip Semiconductor (EZCH) to Neutral; Q4:14 Consensus at Risk

Chardan Capital Markets downgraded EZchip Semiconductor (NASDAQ: EZCH) from Buy to Neutral with a price target of $22.00 (from $30.00) saying weak carrier spending to put consensus Q4:14 at risk.

Jay Srivatsa comments, "Late last week, Juniper Networks (JNPR) reported Q3:14 revenues below consensus and guided for Q4:14 revenues to be sequentially lower due to weakness in routing sales. Specifically, on its concall, Juniper stated that it expects the overall revenue environment to be challenging over the next several quarters as near term factors are impacting demand from its larger service provider customers. The company also mentioned that US carrier spending was worse than expected and it was witnessing softening in the broad based enterprise market and a greater than expected slowdown in demand from European service providers. While Juniper only accounts for 6% of EZCH’s revenues, we believe Cisco (CSCO-NR), a 39% customer and ZTE Corp. (ZTCOF-NR), a 20% customer of EZCH, both of whom dependent on capex spending by service providers, could be witnessing similar disruption in its routing business."

For an analyst ratings summary and ratings history on EZchip Semiconductor click here. For more ratings news on EZchip Semiconductor click here.

Shares of EZchip Semiconductor closed at $21.40 yesterday.

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