Bank of America Merrill Lynch Underperform On RF Micro Devices

Bank of America Merrill Lynch is out with a research report on RF Micro Devices (NASDAQ: RFMD) and it has an Underperform rating and a $5.50 price target on shares.

In a note to clients, Bank of America Merrill Lynch writes, "RF Micro Devices (RFMD) is the #2 vendor of radio frequency (RF) chips for mobile handsets. We like its new products, but reinstate with an Underperform rating based on increasing competition, uncertainty in engagement with Qualcomm's reference architecture, and an unattractive 12x 2012 PE that is already at a premium to comps (10x). We assign a $5.50 PO, based on 11x 2012 pro-forma earnings given potential near-term momentum at Samsung and potential socket presence at Apple."

Shares of RFMD closed at $5.83 yesterday.