Slew of Analyst Upgrades Driving Chip Stocks (ALTR, ATML, CY, ONN, XLNX)
It was not that long ago that we saw a research report from Credit Suisse calling the chip sector at an "irresistible cyclical bottom." Now we have a slew of analyst reports driving shares higher in the semiconductor sector on Tuesday. Chip stocks are responding well, as you will see.
Altera Corp. (NASDAQ: ALTR) was reiterated with a Buy rating and the price target was raised by $4 to $42, based on demand recovery and the possibility of a higher dividend. Shares are up 1.8% at $36.39, against a 52-week range of $29.59 to $40.31.
Atmel Corp. (NASDAQ: ATML) was raised to Buy from Hold at Needham with a price target of $10 on the stock. Shares are up 1.8% at $7.30, against a 52-week range of $4.37 to $10.73.
Cypress Semiconductor Corp. (NASDAQ: CY) was raised to Buy from Hold by Needham, and the price target is $13.00 per share. The upgrade is based in part on valuation and in part due to improving conditions in the SRAM chip market. Shares of Cypress are up 5% at $10.35, against a 52-week range of $8.70 to $18.70.
ON Semiconductor Corp. (NASDAQ: ONNN) was reiterated as Buy at Canaccord Genuity with a $10 price target. The firm is increasing estimates on an improved target model from analysts' day, with higher gross and operating margin targets versus the prior model, leading to higher earnings estimates. Upside to revenue may be driven by strength for handsets and autos, followed by improving industrial and white goods demand. Shares are up 1.4% at $8.57, against a 52-week range of $5.70 to $9.44.
Xilinx Inc. (NASDAQ: XLNX) is surging after Bank of America/Merrill Lynch raised its price target by $7 to $45 per share and raised the rating to Buy from Hold. The upgrade is driven by the 4G LTE wireless build out, IP broadband, data center upgrades and improving industrial demand.
Filed under: 24/7 Wall St. Wire, Analyst Calls, Semiconductor, Semiconductors, Technology, Technology Companies Tagged: ALTR, ATML, CY, featured, ONNN, XLNX