CIBC Positive on Trident Micro (TRID)
Tweet
Share
E-mailGet Alerts TRID Hot Sheet
Price: $0.16 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Join SI Premium – FREE
CONTRIBUTOR http://notablecalls.blogspot.com
CIBC is reiterating their Sector Outperformer rating on Trident Micro (NASDAQ: TRID), while raising CY07 ests. & introducing CY08 forecast. Following a seasonal CY1Q, they expect TRID's image processing lead, peerless mid/high-range decode economics, & superior growth prospects, will be quite evident, to value & growth investors alike.
TRID has been under undue and incessant pressure for the past 3Qs, due to confusion over competition (BRCM, Mediatek, ZRAN, & ATI--non of which really compete with TRID), TRID's reticence (due to options-related 10K/Q delinquencies), and naturally declining, yet still sublime, gross margins.
In the report, the form elucidates why they believe investors & the cacophony of boorish bears are totally wrong about TRID, and why it will be a steal beyond C1Q:
- Firm believes that thus far, not a single Broadcom win has come at TRID's expense
- TV markets are bifurcating and TRID has laid claim to the mid to high end as others such as Taiwan Inc. battle at the low end.
- In spite of inevitable erosion, Trident s Gross and Operating Margins are still well-above the average (within the Digital Media Semiconductor peer group) and, as such, TRID should trade at a premium valuation rather than at a 30%+ discount. While gross margins are definitely coming down, and will likely see a high-4- handle in CY08, the firm believes that Trident should be an exception to the rule.
- TRID is on track to put its options review and management succession issues behind it in short order.
Along these lines, the firm increased their CY07 est. to $1.32 on $325M from $1.30/$320M, and established CY08 ests. of $1.80 on $450M. At ~13 new CY07E EPS of $1.32, TRID trades ~33% below peers' 20x. On the contrary, they believe TRID deserves a premium valuation, given its expanding domination of Tier-1 image processing (adding Philips in C2Q), and its growing- likelihood of similar success in HD decode during CY08.
Reits Sector Outperformer and $25 tgt.
Notablecalls: Would not be surprised to see some buy interest following the call. But also but sure to check out comments from TXN.
For more calls go to http://notablecalls.blogspot.com
CIBC is reiterating their Sector Outperformer rating on Trident Micro (NASDAQ: TRID), while raising CY07 ests. & introducing CY08 forecast. Following a seasonal CY1Q, they expect TRID's image processing lead, peerless mid/high-range decode economics, & superior growth prospects, will be quite evident, to value & growth investors alike.
TRID has been under undue and incessant pressure for the past 3Qs, due to confusion over competition (BRCM, Mediatek, ZRAN, & ATI--non of which really compete with TRID), TRID's reticence (due to options-related 10K/Q delinquencies), and naturally declining, yet still sublime, gross margins.
In the report, the form elucidates why they believe investors & the cacophony of boorish bears are totally wrong about TRID, and why it will be a steal beyond C1Q:
- Firm believes that thus far, not a single Broadcom win has come at TRID's expense
- TV markets are bifurcating and TRID has laid claim to the mid to high end as others such as Taiwan Inc. battle at the low end.
- In spite of inevitable erosion, Trident s Gross and Operating Margins are still well-above the average (within the Digital Media Semiconductor peer group) and, as such, TRID should trade at a premium valuation rather than at a 30%+ discount. While gross margins are definitely coming down, and will likely see a high-4- handle in CY08, the firm believes that Trident should be an exception to the rule.
- TRID is on track to put its options review and management succession issues behind it in short order.
Along these lines, the firm increased their CY07 est. to $1.32 on $325M from $1.30/$320M, and established CY08 ests. of $1.80 on $450M. At ~13 new CY07E EPS of $1.32, TRID trades ~33% below peers' 20x. On the contrary, they believe TRID deserves a premium valuation, given its expanding domination of Tier-1 image processing (adding Philips in C2Q), and its growing- likelihood of similar success in HD decode during CY08.
Reits Sector Outperformer and $25 tgt.
Notablecalls: Would not be surprised to see some buy interest following the call. But also but sure to check out comments from TXN.
For more calls go to http://notablecalls.blogspot.com
You May Also Be Interested In
- JPMorgan Starts Kanzhun Ltd (2076:HK) at Overweight
- RBC Capital Downgrades Bucher Industries AG (BUCN:SW) (BCHHF) to Sector Perform
- JPMorgan Upgrades Bajaj Housing Finance (BAJAJHFL:IN) to Neutral
Create E-mail Alert Related Categories
Analyst Comments, ContributorsSign 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!
