Shares of storage and networking semiconductor company PMC-Sierra (PMCS) have done reasonably well since I last wrote about the company in October. Up around 20%, the company has lagged acquisition-assisted LSI (LSI), but matched Broadcom (BRCM) and outperformed Applied Micro (AMCC). Analysts, though, are a little worse than lukewarm on the shares, with four holds and two underperforms at present.
In
reading the sell-side research, it seems like analysts are concerned
about going positive on PMC-Sierra ahead of meaningful ramps in PCIe
flash controllers, 12G SAS, and OTN. While I find it odd that the
normally overly-bullish sell-side is being cautious, investors don't
seem to have the same issue. With the run in the shares over the past
six months, PMC-Sierra's price seems more than fair relative to its
long-term cash flow-based value and likewise quite reasonable relative
to operating margins.
Read more here:
Should Investors Buy PMC-Sierra Ahead Of Big Product Ramps?
No comments:
Post a Comment