Piper Jaffray Lowers PT on Xilinx to $38
Piper Jaffray has published a research report on Xilinx (NASDAQ: XLNX) and has lowered the price target from $40 to $38.
In the report, Piper Jaffray writes, "XLNX pre-announced a shortfall this morning and now expects Q3:12 (DEC) sales to be down 9% to 12% versus prior guidance of down 3% to 8% sequentially. In the press release, the company indicated it is due to a decline at large customers in the communications end market. We believe this is CSCO and European wireless infrastructure suppliers. Communication infrastructure is roughly 45% to 50% of XLNX revenue and the largest end market for the company. The company also raised its gross margin guidance for the quarter from 64% to 65%. We believe this reflects the richer mix of higher margin, lower volume customers in the military and data processing end markets."
Piper Jaffray maintains its Overweight rating on Xilinx, which is currently trading down $0.04 from Friday's $31.21 closing price.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.