Sigma Designs (SIGM) shares are trading higher this morning after BWS Financial analyst Hamed Khorsand this morning raised his rating on the stock to Buy from Hold. He writes in a research note that the chip maker “has continued to benefit” from an increase in total IPTV subscribers. (The company makes chips used in IPTV set-top boxes.) The analyst set a $19 price target on the stock, which closed yesterday at $11.74.
Khorsand says the fear of Broadcom (BRCM) entering the market for set-top boxes based on Microsoft (MSFT) Mediaroom software “remains an overhand with no known timeline,” but he adds that the growth in the IPTV market “is sustainable and leads to the expectation of SIGM posting better-than-expected fiscal first quarter results.”
Khorsand notes that Broadcom is not likely to have their competing chips commercially available for another 3-6 months. “The push� back of the schedule gives SIGM the ability to retain and grow its market share,” he writes. He also says that while their is trepidation that AT&T (T) will adopt the BRCM chip for 100% of its boxes, Khorsand says his own sources indicate AT&T will dual source processors for its boxes.
SIGM this morning is up 36 cents, or 3.1%, to $12.10.
No comments:
Post a Comment