PLX Technology Inc. (PLXT) Price Target Raised
January 26, 2010 3:27 PM
Northland Securities released a report on PLX Technology Inc. (NASDAQ: PLXT). PLX reported a strong Q4, 2009. The company reported revenues of $26.6 million which was above its guidance of $22.5-$25.5 million and Northland’s estimate of $24.1 million.
The key revenue drivers were PCIe and the distribution-driven Connectivity products. PLX also offered guidance for Q1, 2010. The company expects revenues to be in the range of $27-$29 million. Northland has raised the 2010 estimates for PLX. The revenues have been increased from $104 million to $118 million. The EPS estimate has been raised from $0.13 to $0.22.
Northland expects a 75% year-over-year growth in PCIe and 32% year-over-year growth in Connectivity. The price target for PLX has been raised to $5. The new price target is based on a multiple of 18x the P/E applied to 2010 EPS estimate of $0.22. Northland has maintained a Market Perform rating for PLX.
