FBR Maintains Outpeform, $28 Target on Microsemi

FBR reiterates its Outperform rating and $28 target price on Microsemi MSCC as growth story continues despite a slightly soft guidance. FBR says, "Thursday, Microsemi reported in-line calendar 4Q11 results, but guided calendar 1Q12 revenues and margins softer than expected. While slightly disappointing, Microsemi (along with Maxim) is reflecting some of the best peak-to-trough revenue, margin, and EPS compression in the sector. Organic revenues are contracting 11% peak-to-trough, just behind Maxim (–10%), but better than Linear (–24%), TI/National (–24%), and Analog Devices (–14%). Microsemi's gross margins compressed 360 bps peak-to-trough, in line with best-in-class Linear (–360 bps), and better than Maxim (–500 bps), Analog Devices (–580 bps), and TI (–920 bps)." MSCC closed at $20.38 a share.