Piper Jaffray reiterated a Neutral rating on Xilinx (NASDAQ: XLNX), and raised the price target to $41.00 (from $39.00), following the company's 2Q16 earnings results. Revenue was in-line with the midpoint of management guidance and slightly below the consensus estimate of $530M. XLNX posted EPS of $0.48, which was above the consensus estimate of $0.47 on better-than-expected gross margin.

Analyst Ruben Roy commented, "We maintain our Neutral rating as we continue to view XLNX as fully valued following mixed FQ2 results. XLNX reported FQ2 revenue below consensus and down 4% sequentially. EPS of $0.48 was just above the consensus estimate of $0.47 on 70% gross margins. Communications and data center was up 5% q/q as wireless infrastructure experienced some modest recovery. Industrial and Aerospace is expected to be up in F3Q16, following a weak quarter (-12.7% q/q) as aerospace and defense spending picks up. XLNX will benefit from an extra week in the December quarter, helping drive an expected 3-7% sequential growth. We remain cautious as wireless spending recovery appears measured for now. Valuation remains a challenge with XLNX trading at 21x forward P/E vs. 17x for semi peers. We tick up our CY16 estimates and our PT moves to $41 ($39 previously) but valuation keeps us on the sidelines."

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Shares of Xilinx closed at $45.38 yesterday.