Auriga Maintains a 'Buy' on EZchip Semiconductor (EZCH); Q1 Guidance Soft, But Mgmt Confident in Recovery
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Price: $25.49 --0%
Rating Summary:
5 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Auriga maintains a 'Buy' on EZchip Semiconductor (NASDAQ: EZCH) price target raised from $37 to $45.
Auriga analyst says, "We maintain our rating and increase our price target for EZchip as the company's 1Q12 guidance was soft, but management was confident about growth in 2012 on NP-4 launch at multiple large customers and anticipated carrier spending recovery in 2H12. EZCH took a $9.9 million one-time charge to margins, which should substantially boost gross margins over the next few years. Diversification of customer base (with two new 10%+ customers), lower opex guidance for 2012 and increased expectations from Cisco (Nasdaq: CSCO)(Buy) were all significant positives, which lead us to boost our CY12/13 estimates and price target. We continue to view EZCH as a secular growth story, which should grow significantly faster than the edge router segment on new customers, share gains and higher ASPs."
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 $37.05 yesterday.
Auriga analyst says, "We maintain our rating and increase our price target for EZchip as the company's 1Q12 guidance was soft, but management was confident about growth in 2012 on NP-4 launch at multiple large customers and anticipated carrier spending recovery in 2H12. EZCH took a $9.9 million one-time charge to margins, which should substantially boost gross margins over the next few years. Diversification of customer base (with two new 10%+ customers), lower opex guidance for 2012 and increased expectations from Cisco (Nasdaq: CSCO)(Buy) were all significant positives, which lead us to boost our CY12/13 estimates and price target. We continue to view EZCH as a secular growth story, which should grow significantly faster than the edge router segment on new customers, share gains and higher ASPs."
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 $37.05 yesterday.
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