DragonWave Inc (NASDAQ: DRWI), H&E Equipment Services, Inc. (NASDAQ: HEES), Life Technologies Corporation (NASDAQ: LIFE), Nokia Co. (NYSE: NOK) and Riverbed Technology, Inc. (NASDAQ: RVBD) now getting coverage initiated by these analysts.
Brigantine initiated coverage on DragonWave Inc (DRWI). They placed a “Hold” rating on the firm.
Northcoast Research initiated coverage on H&E Equipment Services, Inc. (HEES). They have a “Buy” rating on the stock.
Auriga initiated coverage on Life Technologies Corporation (LIFE). They placed a “Buy” rating and a price target of $63 on the company.
ThinkEquity initiated coverage on Nokia Co. (NOK). They started with a “Hold” rating and a price target of $8 on the Nokia.
Morgan Keegan initiated coverage on Riverbed Technology, Inc. (RVBD). They have an “Outperform” rating and a price target of $45 on the business.
Showing posts with label Brigantine. Show all posts
Showing posts with label Brigantine. Show all posts
Thursday, April 28, 2011
Wednesday, April 27, 2011
Cerner (CERN) (JOBS) (OIIM) (PPC) - New Ratings and Price Targets
New ratings and price targets on Cerner Corp (NASDAQ: CERN), 51job, Inc. (NASDAQ: JOBS), O2Micro International Limited (NASDAQ: OIIM) and Pilgrims Pride Corp (NYSE: PPC).
Oppenheimer initiated coverage on Cerner Corp (CERN). They placed an “Underperform” rating and a price target of $90.00 on the company.
William Blair initiated coverage on 51job, Inc. (JOBS). They placed a “Market Perform” rating on the firm.
Brigantine initiated coverage on O2Micro International Limited (OIIM). They placed a “Buy” rating and a price target of $10.00 on the stock.
BB&T (NYSE:BBT) initiated coverage on Pilgrims Pride Corp (PPC). They placed a “Hold” rating on the company.
Oppenheimer initiated coverage on Cerner Corp (CERN). They placed an “Underperform” rating and a price target of $90.00 on the company.
William Blair initiated coverage on 51job, Inc. (JOBS). They placed a “Market Perform” rating on the firm.
Brigantine initiated coverage on O2Micro International Limited (OIIM). They placed a “Buy” rating and a price target of $10.00 on the stock.
BB&T (NYSE:BBT) initiated coverage on Pilgrims Pride Corp (PPC). They placed a “Hold” rating on the company.
Tuesday, April 26, 2011
Volterra (VLTR) (PEET) (PLXT) TXN) Downgraded on April 26
Shares of Volterra Semi (NASDAQ: VLTR), Peet S Coffee & Tea Inc (NASDAQ: PEET), PLX Technology Inc (NASDAQ: PLXT) and Texas Instruments (NYSE: TXN) were all downgraded on April 26 by several brokerages.
Robert W. Baird downgraded Peet S Coffee & Tea Inc (PEET) from an “Outperform” rating to a “Neutral” rating. They have a price target of $48.00 on Peet S Coffee & Tea Inc, down from the prior $53.
Northland Securities downgraded PLX Technology Inc (PLXT) from an “Outperform” rating to a “Market Perform” rating. They have a price target of $4.00 on PLX Technology, down from the previous $5.
BNP Paribas downgraded Texas Instruments (TXN) from an “Outperform” rating to a “Neutral” rating.
Brigantine downgraded Volterra Semi (VLTR) from a “Buy” rating to a “Hold” rating.
Robert W. Baird downgraded Peet S Coffee & Tea Inc (PEET) from an “Outperform” rating to a “Neutral” rating. They have a price target of $48.00 on Peet S Coffee & Tea Inc, down from the prior $53.
Northland Securities downgraded PLX Technology Inc (PLXT) from an “Outperform” rating to a “Market Perform” rating. They have a price target of $4.00 on PLX Technology, down from the previous $5.
BNP Paribas downgraded Texas Instruments (TXN) from an “Outperform” rating to a “Neutral” rating.
Brigantine downgraded Volterra Semi (VLTR) from a “Buy” rating to a “Hold” rating.
Friday, January 28, 2011
Align Technology's (NASDAQ:ALGN) Macro Challenges Remain, Responding Operationally
Even though there are macro challenges still weighing on Align Technology (NASDAQ:ALGN), Brigantine sees key operating metrics heading in the right direction, and continue to like the company.
Brigantine says, "We are pleased by the direction of key operating metrics including case starts, utilization and pricing, particularly given the macro challenges. With expanding product capabilities and emerging market opportunities, we remain buyers and keep a $23 price target."
Brigantine Advisors maintains a "Buy" rating on Align Technology (ALGN), which closed Thursday at $20.90, up $0.39, or 1.91 percent.
Brigantine says, "We are pleased by the direction of key operating metrics including case starts, utilization and pricing, particularly given the macro challenges. With expanding product capabilities and emerging market opportunities, we remain buyers and keep a $23 price target."
Brigantine Advisors maintains a "Buy" rating on Align Technology (ALGN), which closed Thursday at $20.90, up $0.39, or 1.91 percent.
Thursday, January 27, 2011
Parametric Technology (Nasdaq:PMTC) Outlook Stronger on MFG Data
Recent data from the manufacturing sector seems to show it is enjoying some improvement in growth, according to Brigantine, and should be beneficial to Parametric Technology (Nasdaq:PMTC).
Brigantine says, "PTC delivered a solid quarter with revenues meeting guidance and non GAAP EPS coming in in-range. Our over enthusiasm had to do with the streams of positive manufacturing data we saw coming in the form of recent ISM data and Beige book data, this was magnified by PTC having a particularly strong 1Q 2010 license revenues number from which we modeled license revenue growth for Q1 2011.
"PTC will be hosting a conference call tomorrow to answer questions. We will fine tune our model and update our thoughts at that point. However, preliminarily we are now expecting revenues of $1,104.9 million and non GAAP EPS of $1.10. Our previous expectations were for revenues of $1,100.8 million and non GAAP EPS of $1.19 for FY 2011. Guidance is for revenue of between $1,110 million to$1,130 million with non GAAP EPS of $1.20-$1.25 for FY2011."
Brigantine Advisors maintains a 'Buy' rating on Parametric Technology (PMTC), which was trading at $22.88, losing $1.54, or 6.31 percent, as of 2:45 PM EST. Brigantine has a price target of $26 on Parametric.
Brigantine says, "PTC delivered a solid quarter with revenues meeting guidance and non GAAP EPS coming in in-range. Our over enthusiasm had to do with the streams of positive manufacturing data we saw coming in the form of recent ISM data and Beige book data, this was magnified by PTC having a particularly strong 1Q 2010 license revenues number from which we modeled license revenue growth for Q1 2011.
"PTC will be hosting a conference call tomorrow to answer questions. We will fine tune our model and update our thoughts at that point. However, preliminarily we are now expecting revenues of $1,104.9 million and non GAAP EPS of $1.10. Our previous expectations were for revenues of $1,100.8 million and non GAAP EPS of $1.19 for FY 2011. Guidance is for revenue of between $1,110 million to$1,130 million with non GAAP EPS of $1.20-$1.25 for FY2011."
Brigantine Advisors maintains a 'Buy' rating on Parametric Technology (PMTC), which was trading at $22.88, losing $1.54, or 6.31 percent, as of 2:45 PM EST. Brigantine has a price target of $26 on Parametric.
ON Semi's (NASDAQ:ONNN) Sales May Have Improved in Latter Part of Quarter
ON Semi's (NASDAQ:ONNN) quarterly earnings report shouldn't bring any surprises, as Brigantine say they should come in at expectations, although possibly on the lowered end of sales decline on stronger sales growth in the latter part of the quarter.
Brigantine says, "We expect a solid Q4 report from ON Semiconductor when the company reports results next week. Management had guided sales to decline 3% - 6% sequentially, and we believe the quarter progressed inline with expectations, and estimate sales will decline about 4% Q/Q. Based on our checks, orders may have improved through the course of the quarter as evidence of healthy consumer spending over the Christmas period percolated through the quarter...We remain very optimistic on the contribution from Sanyo, and remain comfortable with our BUY rating on the stock."
Brigantine Advisors maintains a "Buy" rating on ON Semi (ONNN), which was trading at $11.47, up $0.17, or 1.50 percent, as of 2:41 PM EST. Brigantine has a price target of $14 on On Semi.
Brigantine says, "We expect a solid Q4 report from ON Semiconductor when the company reports results next week. Management had guided sales to decline 3% - 6% sequentially, and we believe the quarter progressed inline with expectations, and estimate sales will decline about 4% Q/Q. Based on our checks, orders may have improved through the course of the quarter as evidence of healthy consumer spending over the Christmas period percolated through the quarter...We remain very optimistic on the contribution from Sanyo, and remain comfortable with our BUY rating on the stock."
Brigantine Advisors maintains a "Buy" rating on ON Semi (ONNN), which was trading at $11.47, up $0.17, or 1.50 percent, as of 2:41 PM EST. Brigantine has a price target of $14 on On Semi.
Smith Micro Software (NASDAQ:SMSI) Continues to Defend Position Among Key Customers
Questions on the ability of Smith Micro Software (NASDAQ:SMSI) to defend its position among key customers of its data connectivity software have been raised recently, and Brigantine believes the company still has the edge among the top U.S. network operators.
Brigantine says, "We are reiterating our rating on the heels of a recent report that questioned Smith's data connectivity software position among key customers. By our understanding, Smith remains the dominant connectivity software provider for the top network operators in the U.S., and while competition always remains a threat, Smith has rebuffed encroachment on its competitive position by providing significant value over multiple past years. Most important are the prospects before Smith where new solutions bolster product offering while leveraging carrier relationships."
Brigantine Advisors maintains a 'Buy' rating on Smith Micro Software (SMSI), which closed Wednesday at $12.96, gaining $0.68, or 5.54 percent. Brigantine has a price target on Smith Micro of $18.
Brigantine says, "We are reiterating our rating on the heels of a recent report that questioned Smith's data connectivity software position among key customers. By our understanding, Smith remains the dominant connectivity software provider for the top network operators in the U.S., and while competition always remains a threat, Smith has rebuffed encroachment on its competitive position by providing significant value over multiple past years. Most important are the prospects before Smith where new solutions bolster product offering while leveraging carrier relationships."
Brigantine Advisors maintains a 'Buy' rating on Smith Micro Software (SMSI), which closed Wednesday at $12.96, gaining $0.68, or 5.54 percent. Brigantine has a price target on Smith Micro of $18.
Wednesday, January 26, 2011
Can Adobe (NASDAQ:ADBE) Deliver on Promises?
Adobe (NASDAQ:ADBE) has recently been communicating to the market that they're in the midst of reinventing themselves, Brigantine notes they're going to wait to see if management is able to deliver on their promises.
Brigantine says, "Adobe Systems’ management has been vocal over the past couple weeks about how they are reinventing themselves. For instance: more frequent releases of Creative Suite, acquiring more online marketing companies and continued emphasis on SaaS focused enterprise products. Our Take – We believe that it is really hard to change tires while going 70 miles an hour, but understand why Adobe needs to.
"For revenues in FY2011 we are low on the street expecting 3.6% year on year, while the street is expecting 9.5% growth. Our EPS expectations for 2011 are in line with street expectations...Shares of Adobe are currently trading at 14.5x our 2011 EPS expectations of $2.32, while our universe is trading at 19.5x. We believe that this discount is warranted until Adobe’s management team shows that it can make these changes successfully."
Brigantine Advisors reiterates a 'Hold' on Adobe (ADBE), which was trading at $33.51, down $0.05, or 0.15 percent, as of 2:33 PM EST.
Brigantine says, "Adobe Systems’ management has been vocal over the past couple weeks about how they are reinventing themselves. For instance: more frequent releases of Creative Suite, acquiring more online marketing companies and continued emphasis on SaaS focused enterprise products. Our Take – We believe that it is really hard to change tires while going 70 miles an hour, but understand why Adobe needs to.
"For revenues in FY2011 we are low on the street expecting 3.6% year on year, while the street is expecting 9.5% growth. Our EPS expectations for 2011 are in line with street expectations...Shares of Adobe are currently trading at 14.5x our 2011 EPS expectations of $2.32, while our universe is trading at 19.5x. We believe that this discount is warranted until Adobe’s management team shows that it can make these changes successfully."
Brigantine Advisors reiterates a 'Hold' on Adobe (ADBE), which was trading at $33.51, down $0.05, or 0.15 percent, as of 2:33 PM EST.
Corning (NYSE:GLW) Up on Improving Conditions, Outlook
Corning (NYSE:GLW) looks solid in their current markets and appears ready to increase its revenue opportunities in other segments.
Brigantine says, "With inventory levels returning to a healthy state, IT panel pricing stable, TV panel ASP declines moderating, utilization rates aggressively managed, and demand poised to pick up at the end of 1Q11, we continue to believe that the LCD industry is approaching a 'bottom.' Fundamentally, we believe Corning is a robust company building on its core competencies to increase its revenue opportunities (i.e. solar, environmental technologies, touch, life sciences), while maintaining its dominant position in current markets."
Brigantine Advisors reiterates a "Buy" rating on Corning (GLW), which was trading at $21.84, up $0.64, or 2.99 percent, as of 2:26 PM EST. Brigantine raised their price target on Corning from $22 to $23.
Brigantine says, "With inventory levels returning to a healthy state, IT panel pricing stable, TV panel ASP declines moderating, utilization rates aggressively managed, and demand poised to pick up at the end of 1Q11, we continue to believe that the LCD industry is approaching a 'bottom.' Fundamentally, we believe Corning is a robust company building on its core competencies to increase its revenue opportunities (i.e. solar, environmental technologies, touch, life sciences), while maintaining its dominant position in current markets."
Brigantine Advisors reiterates a "Buy" rating on Corning (GLW), which was trading at $21.84, up $0.64, or 2.99 percent, as of 2:26 PM EST. Brigantine raised their price target on Corning from $22 to $23.
Wednesday, January 19, 2011
Intuitive Surgical (NASDAQ:ISRG) Trading as Steep Premium to Peers
Looking ahead, Brigantine sees Intuitive Surgical (NASDAQ:ISRG) needed a strong macro-economic environment to grow, along with expanded penetration of da Vinci.
Brigantine says, "We maintain a Hold rating and think the prospect of upside to our conservative projections will hinge on an improved macro environment, along with the company’s ability to drive system upgrades and increase da Vinci’s penetration in surgical categories outside of hysterectomy and prostatectomy. We see Q4 revenues rising 6.6% to $344.4M and see EPS of $2.05 vs. the year-ago $1.95. In our view, valuation expansion will be challenging with ISRG priced at 29x our 2011 EPS estimate and 7.5x estimated 2011 revenues, sharply ahead of peers.
"...However, with the stock trading at steep premiums to peers we remain on the sidelines and calculate fair value in the $275-$300 range."
Brigantine Advisors reiterates a "Hold" rating on Intuitive Surgical (ISRG), which closed Tuesday at $296.32, gaining $8.04, or 2.79 percent.
Brigantine says, "We maintain a Hold rating and think the prospect of upside to our conservative projections will hinge on an improved macro environment, along with the company’s ability to drive system upgrades and increase da Vinci’s penetration in surgical categories outside of hysterectomy and prostatectomy. We see Q4 revenues rising 6.6% to $344.4M and see EPS of $2.05 vs. the year-ago $1.95. In our view, valuation expansion will be challenging with ISRG priced at 29x our 2011 EPS estimate and 7.5x estimated 2011 revenues, sharply ahead of peers.
"...However, with the stock trading at steep premiums to peers we remain on the sidelines and calculate fair value in the $275-$300 range."
Brigantine Advisors reiterates a "Hold" rating on Intuitive Surgical (ISRG), which closed Tuesday at $296.32, gaining $8.04, or 2.79 percent.
Tuesday, January 18, 2011
Cree (NASDAQ:CREE) Earnings Should Come in With Consensus
Cree (NASDAQ:CREE) will report earnings after close today, and Brigantine believes they'll come very close to consensus, as they're "priced to perfection" they said.
Brigantine noted, "Cree will report fQ2’11 (Dec) results on Tuesday, January 18th after the markets close. Our estimates are $0.58/ $271M, generally inline with the Street’s $0.58/ $276.6M, vs. management’s guidance of $0.56 - $0.60 on sales of $270M - $280M. Our fQ3’11 estimates are $0.53/ $276M, while Street consensus is $0.58/ $288M.
"CREE trades at 30x our CY11 EPS estimate and at 6.5x our FY11 sales estimate; most semi stocks trade at 10x – 25x their 2011 EPS estimates. Thus it appears CREE is priced to perfection, while the long-term trends for LED pricing appear unfavorable."
Brigantine Advisors maintains a "Sell" rating on Cree, which closed Friday at $63.77, losing $1.69, or 2.58 percent.
Brigantine noted, "Cree will report fQ2’11 (Dec) results on Tuesday, January 18th after the markets close. Our estimates are $0.58/ $271M, generally inline with the Street’s $0.58/ $276.6M, vs. management’s guidance of $0.56 - $0.60 on sales of $270M - $280M. Our fQ3’11 estimates are $0.53/ $276M, while Street consensus is $0.58/ $288M.
"CREE trades at 30x our CY11 EPS estimate and at 6.5x our FY11 sales estimate; most semi stocks trade at 10x – 25x their 2011 EPS estimates. Thus it appears CREE is priced to perfection, while the long-term trends for LED pricing appear unfavorable."
Brigantine Advisors maintains a "Sell" rating on Cree, which closed Friday at $63.77, losing $1.69, or 2.58 percent.
Friday, January 14, 2011
Apple's (NASDAQ:AAPL) Will Continue to Rise on Growing Business Says Brigantine
Citing the expected solid numbers in the latest quarter and increased guidance in distribution, Brigantine is among those who see Apple reaching the $400 a share mark.
Brigantine says, "Given the expected solid performance in the December quarter, and a bright outlook based on increased distribution dictated in the company's March quarter guidance, we see Apple's shares continuing to reflect the company's growing business. Less the $55 per share in net cash, Apple's valuation at about $291 represents 15.7x our $18.50 FY 2011 (Sept) EPS estimate. We are setting a 12-18 month $400 price target based on 16.5x our $21.00 FY 2012 and adding back the $55 per share in cash (likely a larger per share amount in 12 months). We believe the shares could be accorded an expanding valuation multiple on consistently strong growth and increased share in computers, phones, and peripherals especially at the intersection of computing and wireless connectivity."
Brigantine Advisors maintains a "Buy" rating on Apple (AAPL), which was trading at $347.62, gaining $1.94, or 0.56 percent, as of $1:48 PM EST. Brigantine has a price target on Apple of $400.
Brigantine says, "Given the expected solid performance in the December quarter, and a bright outlook based on increased distribution dictated in the company's March quarter guidance, we see Apple's shares continuing to reflect the company's growing business. Less the $55 per share in net cash, Apple's valuation at about $291 represents 15.7x our $18.50 FY 2011 (Sept) EPS estimate. We are setting a 12-18 month $400 price target based on 16.5x our $21.00 FY 2012 and adding back the $55 per share in cash (likely a larger per share amount in 12 months). We believe the shares could be accorded an expanding valuation multiple on consistently strong growth and increased share in computers, phones, and peripherals especially at the intersection of computing and wireless connectivity."
Brigantine Advisors maintains a "Buy" rating on Apple (AAPL), which was trading at $347.62, gaining $1.94, or 0.56 percent, as of $1:48 PM EST. Brigantine has a price target on Apple of $400.
Aviat Networks (NASDAQ:AVNW) Looks Good on Old, New
Focus on their existing platform Eclipse, along with building out a new platform, along with the old management team returning to jumpstart the company, Brigatine likes the direction Aviat Networks (NASDAQ:AVNW) is taking.
Brigantine says, "Yesterday's (Wednesday) presentation at a competitor's investment conference leaves us thinking Aviat remains steady on its new track: developing new, cost reduced, multi-feature network centric products for its existing Eclipse platform while committing resources not before available in building a new platform we expect to be introduced later this fiscal year. Meanwhile, since the new (but old) management team returned to run the company last summer, Aviat has introduced product-line extensions that are attracting customers' attention. We see Aviat continuing to make progress on the goals the team had set for the company upon re-assuming the reins last year."
Brigantine Advisors maintains a "Buy" rating on Aviat Networks, which closed Thursday at $5.43, down $0.07, or 1.32 percent. Brigantine has a price target on Aviat of $6 a share.
Brigantine says, "Yesterday's (Wednesday) presentation at a competitor's investment conference leaves us thinking Aviat remains steady on its new track: developing new, cost reduced, multi-feature network centric products for its existing Eclipse platform while committing resources not before available in building a new platform we expect to be introduced later this fiscal year. Meanwhile, since the new (but old) management team returned to run the company last summer, Aviat has introduced product-line extensions that are attracting customers' attention. We see Aviat continuing to make progress on the goals the team had set for the company upon re-assuming the reins last year."
Brigantine Advisors maintains a "Buy" rating on Aviat Networks, which closed Thursday at $5.43, down $0.07, or 1.32 percent. Brigantine has a price target on Aviat of $6 a share.
Brigantine Remains on the Sidelines with Immersion (NASDAQ:IMMR)
Even though Brigantine believes the growth prospects for Immersion (NASDAQ:IMMR) is high, they prefer to stay on the sidelines until the company proves itself.
Brigantine says, "IMMR’s innovative haptics technology, recent design wins and new partnerships has brought attention to its differential and advanced idea of human interaction with machines. While we are still in the midst of the touchscreen evolution, credibility from Samsung, LG, and Nokia model wins are fueling IMMR’s growth story. While we believe that the Company’s growth prospects are high, we believe it is still a wait and see story (watching for sustainable execution, design win activity and cost control). Consequently, we remain on the sidelines and maintain our Hold rating."
Brigantine Advisors reiterates a "Hold" rating on Immersion, which closed Thursday at $6.44, down $0.05, or 0.77 percent.
Brigantine says, "IMMR’s innovative haptics technology, recent design wins and new partnerships has brought attention to its differential and advanced idea of human interaction with machines. While we are still in the midst of the touchscreen evolution, credibility from Samsung, LG, and Nokia model wins are fueling IMMR’s growth story. While we believe that the Company’s growth prospects are high, we believe it is still a wait and see story (watching for sustainable execution, design win activity and cost control). Consequently, we remain on the sidelines and maintain our Hold rating."
Brigantine Advisors reiterates a "Hold" rating on Immersion, which closed Thursday at $6.44, down $0.05, or 0.77 percent.
Orbotech (NASDAQ:ORBK) Appears Fully Priced Says Brigantine
Even though Orbotech Ltd. (NASDAQ:ORBK) is positioned strongly in their sector, ongoing weakness has positives already priced into the share price says Brigantine.
Brigantine noted, "After a great capex run in 2010, we saw a LCD equipment digestion period occur towards the end of the year, evident by bookings declines from equipment companies Ulvac, Tokyo Electron and Applied Materials (Nasdaq:AMAT)(Hold). Looking to 2011, we believe that China will be the main focus of order activity from domestic and non domestic manufacturers. As a leading yield management company, we believe Orbotech is well positioned to benefit from these fab projects. Based on its dominant market positioning, growing PCB (printed circuit board) revenues from direct imaging (DI) systems and new solar revenue opportunity, Orbotech’s fundamentals are strong, in our opinion. At the same time, we believe that most of China’s LCD momentum has been priced into shares.
"We are maintaining our 2010 estimates of $526.3M in revenues and EPS of $1.03. Reflecting Orbotech’s preliminary guidance and lower estimated amortization, we are raising our 2011 estimates to $560.4M in revenues and EPS of $1.29, from $498.5M and $0.79, respectively."
Brigantine Advisors maintains a "Hold" rating on Orbotech Ltd., which closed Thursday at $15.00, gaining $0.75, or 5.26 percent.
Brigantine noted, "After a great capex run in 2010, we saw a LCD equipment digestion period occur towards the end of the year, evident by bookings declines from equipment companies Ulvac, Tokyo Electron and Applied Materials (Nasdaq:AMAT)(Hold). Looking to 2011, we believe that China will be the main focus of order activity from domestic and non domestic manufacturers. As a leading yield management company, we believe Orbotech is well positioned to benefit from these fab projects. Based on its dominant market positioning, growing PCB (printed circuit board) revenues from direct imaging (DI) systems and new solar revenue opportunity, Orbotech’s fundamentals are strong, in our opinion. At the same time, we believe that most of China’s LCD momentum has been priced into shares.
"We are maintaining our 2010 estimates of $526.3M in revenues and EPS of $1.03. Reflecting Orbotech’s preliminary guidance and lower estimated amortization, we are raising our 2011 estimates to $560.4M in revenues and EPS of $1.29, from $498.5M and $0.79, respectively."
Brigantine Advisors maintains a "Hold" rating on Orbotech Ltd., which closed Thursday at $15.00, gaining $0.75, or 5.26 percent.
Thursday, January 13, 2011
ON Semi (NASDAQ:ONNN) Takes Over Sanyo Semiconductor, Little Dilution
The original terms of the deal to acquire Sanyo Semiconductor by ON Semiconductor, was to use cash and stock, but that changed to cash and the assumption of debt, resulting in virtually no dilution in relationship to the deal.
Brigantine said, "We are adjusting our estimates following the completion of ON’s acquisition of Sanyo Semiconductor. When the deal was announced the acquisition was to be financed by cash and stock, but was paid for by cash and the assumption of debt. As a result there will be no stock dilution related to the acquisition...Incorporating the contribution from Sanyo Semiconductor, our 2011 estimates go to $1.25/ $3.54B from $1.05/ $2.4B previously. We are also introducing our 2012 estimates of $1.60/ $3.87B."
Brigantine Advisors maintains a "Buy" rating on ON Semi, which closed Wednesday at $11.37, gaining $0.26, or 2.29 percent. Brigantine increased their price target for ONNN from $10 to $14.
Brigantine said, "We are adjusting our estimates following the completion of ON’s acquisition of Sanyo Semiconductor. When the deal was announced the acquisition was to be financed by cash and stock, but was paid for by cash and the assumption of debt. As a result there will be no stock dilution related to the acquisition...Incorporating the contribution from Sanyo Semiconductor, our 2011 estimates go to $1.25/ $3.54B from $1.05/ $2.4B previously. We are also introducing our 2012 estimates of $1.60/ $3.87B."
Brigantine Advisors maintains a "Buy" rating on ON Semi, which closed Wednesday at $11.37, gaining $0.26, or 2.29 percent. Brigantine increased their price target for ONNN from $10 to $14.
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